Interest calculations, Accounting Basics

Assignment Help:

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

 


Related Discussions:- Interest calculations

What is t-account, Q. What is T-account? To exemplify recording the inc...

Q. What is T-account? To exemplify recording the increases and decreases in an account texts use the T-account which appear like a capital letter T. The name of the account suc

Explain about accrued liabilities, Q. Explain about Accrued liabilities? ...

Q. Explain about Accrued liabilities? Accrued liabilities are liabilities not so far recorded at the end of an accounting period. They represent responsibility to make payments

Course project, how to develop a course project having to do with writing n...

how to develop a course project having to do with writing notes for a fictitious annual report

Qualitative characteristics of financial reporting, Q. Qualitative characte...

Q. Qualitative characteristics of financial reporting? Accounting information must possess qualitative characteristics to be useful in decision making. This criterion is hard t

Prepare the journal entry, Assume that the following are independent situat...

Assume that the following are independent situations recently reported in the Wall Street Journal. 1. National Electric 8% bonds, maturing January 28, 2013, were issued at 112.16.

Assume tc stands for total cost, 1. Fill in the table below.  Assume TC sta...

1. Fill in the table below.  Assume TC stands for Total Cost, TFC as Total Fixed Cost, TVC as Total Variable Cost, ATC as Average Total Cost, AFC as Average Fixed Cost, AVC as Aver

What do you mean by cross-indexing, Q. What do you mean by Cross-indexing? ...

Q. What do you mean by Cross-indexing? Usually, accountants should check and trace the origin of their transactions so they provide cross indexing. Cross-indexing is the insert

After the closing entries are posted to the ledger, After the closing entri...

After the closing entries are posted to the ledger, each revenue account will have a zero balance: a. a zero balance, b. a debit balance, c. a credit balance, or d. either a debi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd