00:01
Hello and welcome.
00:02
So it seems that the question may not have been pasted in its entirety, but i was able to find it anyways, and here's the solution i came up with.
00:11
So what we're trying to do here is calculate the amount of interest that was expended on december 31st, which is the calendar year end.
00:22
And to do this, it's actually a pretty simple calculation because we have the principle, which is how much they borrowed.
00:30
That's told in the first.
00:31
Question, it's 300 ,000.
00:35
And we're going to multiply this by the interest rate per year, so per annum, which is 8%.
00:50
This will be an easier way of writing it.
00:53
And we're not quite done yet either, because we also have to multiply this by 2 over 6, because we know that the interest is paid when the loan matures after six months.
01:04
And we are only going to be doing two months only, which is november and december...