Assuming that there are no changes in the fixed deposit amount and the interest rate in 2012, calculate the…

Question

Assuming that there are no changes in the fixed deposit amount and the interest rate in 2012, calculate the total interest receivable for the year ended 31 December, 2012.

ScanSolve AI Tutor · Accepted Answer

10.12.3

To calculate the total interest receivable for the year ended 31 December 20.2, we need to consider the total fixed deposit amount and the annual interest rate.

Determine the total fixed deposit amount.
From the previous adjustments (10.12.1 (i)), there were two fixed deposits of R30 000 each.
$\text{Total Fixed Deposit} = R30\,000 + R30\,000 = R60\,000$
Identify the annual interest rate.
The annual interest rate is given as 12.5%.
Calculate the total interest receivable for the year 20.2.
Since there are no changes in the fixed deposit amount or interest rate, and both deposits were in place by the end of 20.1, the full amount will earn interest for the entire year 20.2.
$\text{Total Interest Receivable} = \text{Total Fixed Deposit} \times \text{Annual Interest Rate}$ $\text{Total Interest Receivable} = R60\,000 \times 12.5\%$ $\text{Total Interest Receivable} = R60\,000 \times \frac{12.5}{100}$ $\text{Total Interest Receivable} = R7\,500$
The total interest receivable for the year ended 31 December 20.2 is $\boxed{\text{R7 500}}$ .

Assuming that there are no changes in the fixed deposit amount and the interest rate in 2012, calculate the total interest receivable for the year ended 31 December, 2012.

Answer

Step-by-step solution

10.12.3

Determine the total fixed deposit amount.

Identify the annual interest rate.

Calculate the total interest receivable for the year 20.2.

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