Page 12 - Chapter 23 - Interest
P. 12
Solution – Basic
1 Jan 2014: Initial amount Holder
Acquires FI for R100 000 less 10% = R90 000
31 Dec 2015:
Receives R130 000
Calculate the accrual amount – 2014 & 2015
Accrual amount = YTM x adjusted initial amount
= 20,18504% x R90 000
= R18 166.54 amount 2013
Accrual
2015:
= 20,18504% x (R90 000 + 18 166.54) Accrual
= R21 833.46 amount 2014
Total interest received: 18 166.54 + 21 833.46 = R40
000
