Page 22 - Chapter 23 - Interest

Solution: Interest-bearing Arrangements

2015:

Interest=

Initial amount = 1 000 000 x 12,35% = R123 500

6 months in YOA: 123 500 x 184/365 = (R61 750)

For: Accrual period 2:

Adjusted Initial amount: 1 00 000 + 123 500

–100 000 = 1 023 500

Interest=

1 023 500 x 12.35% x 181/365

= (R62 682)