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Given
interest rate expense = 12%-13%
interest saving rate = 5%-6% for 1 year
Borrowed birr = 100000 for 1 year
Saving balance 125000
Required calculate interest expense and saving book?
Bezawit Beza
Mar 24
Given interest rate expense = 12%-13% interest saving rate = 5%-6% for 1 year Borrowed birr = 100000 for 1 year Saving balance 125000 Required calculate interest expense and saving book?
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ChatGPT
Mar 24
To calculate the interest expense and interest saving, we can use the following formulas:
Interest Expense = Borrowed Amount x Interest Rate
Interest Saving = Saving Balance x Interest Rate
Given:
Borrowed Amount = 100,000
Interest Rate Expense = 12%-13% = 0.12-0.13
Interest Saving Rate = 5%-6% = 0.05-0.06
Saving Balance = 125,000
Calculating Interest Expense:
Interest Expense = 100,000 x 0.12 = 12,000
Interest Expense = 100,000 x 0.13 = 13,000
Therefore, the interest expense ranges from 12,000 to 13,000.
Calculating Interest Saving:
Interest Saving = 125,000 x 0.05 = 6,250
Interest Saving = 125,000 x 0.06 = 7,500
Therefore, the interest saving ranges from 6,250 to 7,500.
Interest Expense = Borrowed Amount x Interest Rate
Interest Saving = Saving Balance x Interest Rate
Given:
Borrowed Amount = 100,000
Interest Rate Expense = 12%-13% = 0.12-0.13
Interest Saving Rate = 5%-6% = 0.05-0.06
Saving Balance = 125,000
Calculating Interest Expense:
Interest Expense = 100,000 x 0.12 = 12,000
Interest Expense = 100,000 x 0.13 = 13,000
Therefore, the interest expense ranges from 12,000 to 13,000.
Calculating Interest Saving:
Interest Saving = 125,000 x 0.05 = 6,250
Interest Saving = 125,000 x 0.06 = 7,500
Therefore, the interest saving ranges from 6,250 to 7,500.
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Bezawit Beza
Mar 24
Record the transaction of interest
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Tadesse Dagnaw
Mar 25
Record the transaction of interest
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