At December 31, bonds payable of $109,993,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $27,498,250 every September 30, beginning September 30, 2018.

Question

Savion Byrd

Mathematics

8 October, 00:17

At December 31, bonds payable of $109,993,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $27,498,250 every September 30, beginning September 30, 2018.

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Answers (1)

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Eden York · Answer 1

If 112% interest of bond amount = $27,498,250

∴ 100% principal amount = 27,498,250 X 100/112 = $24,552,008.93

10% bond interest = $24,552,008.93 X 0.10 = $2,455,200.89

Between October 2018 and August 2019, it amounts = $2,455,200.09 X 11 = $27,007,209.82

The amount accrued up to September 2019 = $ (27,007,209.82 + 27,498,250) = $54,505,459.82

From October 2019 to August 2020, it will amount = $ (27,007,209.82 + 54,505,459.82) = $81,512669.64

The amount accrued up to September 2020 = $ (81,512,669.64 + 27,498,250) = $109,010,919.64