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A company has taken a loan of 360,000 on 1 may 20X6 at the rate of 10% p.a . The interest is payable every six month in arrear. Calculate the accrued interest for the year ended 30 April 20X6??
Sir my ans is coming
360,000×10%×2/12 = 6000
But it is wrong sir can you calculate the right ans?Two things.
Firstly interest isn’t accrued for the year – it is accrued at the end of the year.
Secondly however, I think you must have your dates wrong. Given that they did not take out the loan until 1 May 20X6, there is no accrued interest at 30 April 20X6 (because there was no loan as at that date!!!).
If you have now copied the question correctly, then the accrued interest is indeed $6,000.
If this is a question from the current edition of the BPP Revision Kit then tell me the number of the question and I will check.
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