I was doing a Kaplan exam question using the exam kit (Question 41c), but I am struggling to understand a calculation in the answer.
It says “”the net interest component would be calculated as $1,020,000 (($900,000 x 8/12) + (3.5% x $36m x 4/12))””
I understand the figures but I don’t understand where the $900,000 is from, because the question has a figure of $9,000,000. Could someone explain, or is there a typo in the answer?