Interest calculations, Accounting Basics

Calculate the amount of interest for each of the following independent situations (assume

365 days per year):


a)  $400,000 is borrowed at 6% interest for 1 year.


b)  $50,000 is borrowed at an annual interest rate of 4% for 60 days.


c)  $120,000 is borrowed at an annual interest rate of 7% for 275 days.




Amount in $


Interest = Principal amount * Rate of interest*Time



Interest amount






Interest amount






Interest amount





Posted Date: 7/12/2012 3:06:02 AM | Location : United States

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