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

Suppose you want to have $5, Suppose you want to have $5,000 saved at the e...

Suppose you want to have $5,000 saved at the end of five years. The bank will pay 2% interest on your money. How much would you have to deposit today to have the $5,000 you want

Define accounting and briefly explain the accounting concept, 1. (a) Define...

1. (a) Define Accounting. Briefly explain the accounting concepts which guide the accountant at the recording stage. (b) "Ledger is said to be the principal book entry and the t

#ti, 10% preference share 336 ooo ordinary share capital 480 000 prepare a...

10% preference share 336 ooo ordinary share capital 480 000 prepare a statement of profit or loss

What is internal control - control of cash, What is Internal control - Co...

What is Internal control - Control of cash Internal control refers to procedures and methods a business uses to protect its assets. Checks are written for all transactio

Enumerate the term- cash discounts, Enumerate the term- Cash discounts ...

Enumerate the term- Cash discounts Offered to encourage prompt and early payment by buyer. Cash discounts are recorded in accounting records of both the buyer and the seller. S

safety stock is appropriate, Given this information: Lead-time demand =...

Given this information: Lead-time demand = 600 pounds Standard deviation of lead-time demand = 52 pounds (Assume normality.) Acceptable stockout risk during lead time = 4

The ratio of __________ to __________ is an example, The ratio of _________...

The ratio of __________ to __________ is an example of a __________ ratio. A. quick assets; current liabilities; leverage B. cost of goods sold; total assets; asset utilization

Location based commerce, .1  INTRODUCTION The world keeps developing new w...

.1  INTRODUCTION The world keeps developing new ways and technologies to help do things and achieve a timeline shorter compared to the way it previously used to be done. New techn

What is consistency, Q. What is Consistency? Consistency in general req...

Q. What is Consistency? Consistency in general requires that a company use the same accounting principles and reporting practices through time. This concept disallows indiscrim

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