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.
Answer:
		Amount in $
	Interest = Principal amount * Rate of interest*Time
a)	Interest amount	=400,000*6%*1
		24,000
b)	Interest amount	=50,000*4%*60/365
		328.77
c)	Interest amount	=120,000*7%*275/365
		6,328.77

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

Ask an Expert

Related Discussions:- Interest calculations, Assignment Help, Ask Question on Interest calculations, Get Answer, Expert's Help, Interest calculations Discussions

Write discussion on Interest calculations
Your posts are moderated

Write your message here..

Related Questions

Demonstrate perpetual inventory procedure, Q. Illustrate perpetual inventor... Q. Illustrate perpetual inventory procedure? Data from Exhibit serves like the basis for some of the entries. You would debit the Merchandise Inventory account to record the en

What is the marginal cost and average total cost, Below is a table with tot... Below is a table with total data for a firm in a perfectly competitive industry. Quantity Total Cost 0 100 10

Accounting cycle, Is here sample assignment for accounting cycle? Is here sample assignment for accounting cycle?

Characteristics of partnership , Can you give me a more simple definition o... Can you give me a more simple definition of Mutual Confidence and give me an example of a situation of it

Illustrate the structure of brain, Illustrate the structure of brain Br... Illustrate the structure of brain Brain is capable of changing its structure in numerous ways. Synapses become stronger and denser. Tiny blood vessels increase in size and numb

Quote please, Hi there, I was just wondering I''m not to sure how to descri... Hi there, I was just wondering I''m not to sure how to describe my assignment, the subject is ACCOUNTING for university level... and it is 100 Level never don''t this paper in high

What is working capital, Q. What is Working capital? Working capital --... Q. What is Working capital? Working capital -- current assets minus current liabilities. In most businesses majorcomponents of working capital are cash, accounts receivable and

Note: i need help with these 10 questions, The Bayside Company uses the LIF... The Bayside Company uses the LIFO cost flow method to value inventory. In the current year, profit at Bayside is running unusually high. The corporate tax rate is also high this ye

Explain about traditional accounting theory, Q. Explain about Traditional a... Q. Explain about Traditional accounting theory? Conventional accounting theory consists of underlying assumptions rules of measurement major principles and modifying convention

Draw a stem-and-leaf plot for the data set, Draw a stem-and-leaf plot for t... Draw a stem-and-leaf plot for the data set. (Enter numbers from smallest to largest separated by spaces. Enter NONE for stems with no values.) Data set A: The annual wages of emp