Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

capital budgeting

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
November 3, 2015 at 12:58 pm #280269
acca.dina
Member
- Topics: 2
- Replies: 12
A building society adds interest monthly to investors’ accounts even though interest rates are expressed in annual terms. The current rate of interest is 6% per annum.
An investor deposits $1,000 on 1 January. How much interest will have been earned by 30 June?
please help me
November 3, 2015 at 2:38 pm #280286
John Moffat
Keymaster
- Topics: 57
- Replies: 51532
The interest each month is 6/12 = 0.5% (or 0.005).
From 1 January to 30 June is 6 months.
So $1,000 will have grown to 1,000 x (1.005)^6 = 1,030.38
So the interest is the extra $30.38.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.