BPP revision kit Question 22

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

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October 16, 2014 at 11:16 am #204571
Kamila
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In the overdraft interest calculation (if no action is taken)
Period 1 =3800000*0.5% = 19000
Period 2 =3549000*0.5% =17745
Period 3 =3517000*0.5% =17585
Where does the period 2(3549) n 3(3517) amounts come from ?
October 16, 2014 at 3:49 pm #204605
John Moffat
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The question says that the interest is based on the opening balance at the start of that month.
The balance at the start of month 2 is the balance at the end of month 1, which is 3549.
Similarly, the balance at the start of month 3 is the balance at the end of month 2.
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