Define the term balance brought forward in this context

Question

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1.1.1

Balance brought forward refers to the closing balance of an account from the end of the previous accounting period, which is then carried over to become the opening balance for the current accounting period.

1.1.2

Identify the balance brought forward from the bank statement.
The balance brought forward (excluding interest) is R 185 942.49.
Write the amount in words.
The balance is One hundred and eighty-five thousand, nine hundred and forty-two Rand and forty-nine cents.

1.1.3
Identify the values for Credit Interest and Balance Brought Forward from the bank statement.
From the statement:
Credit Interest = R 84.76
Balance Brought Forward = R 185 942.49
Substitute these values into the given formula for Annual Interest Rate.
$\text{Annual Interest Rate} = \frac{\text{Credit Interest} \times 365}{\text{Balance Brought Forward}} \times 100\%$ $\text{Annual Interest Rate} = \frac{84.76 \times 365}{185942.49} \times 100\%$
Calculate the annual interest rate.
$\text{Annual Interest Rate} = \frac{30937.4}{185942.49} \times 100\%$ $\text{Annual Interest Rate} \approx 0.16638 \times 100\%$ $\text{Annual Interest Rate} \approx \boxed{\text{16.64\%}}$

Define the term balance brought forward in this context

Step-by-step solution

1.1.1

1.1.2

Identify the balance brought forward from the bank statement.

Write the amount in words.

1.1.3

Identify the values for Credit Interest and Balance Brought Forward from the bank statement.

Substitute these values into the given formula for Annual Interest Rate.

Calculate the annual interest rate.

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