F7 june 2010 paper

Hi Tutor,

May I know why the working for question 2 part iv pertaining the finance cost. I understand that the finance cost for the loan is effective interest of 10% *($20m-$0.5m) =$1.95m. But why did we get 20,000 *5%*6/12? I didn’t see anything mentioned on half year interest. How did you get the carrying amount of loan note as $20.45m? I don’t understand how to get 19500+950? How did we get the $950?