Q) On 1 February 2021, a parent made a long-term loan of £40 million to its subsidiary. The interest on the loan is 8% per annum and is payable every six months, starting 1 May, 2021. The year end is 30 April 2021. The group finance charges figure for the period is: a) Increased by £800,000 b) Decreased by £800,000 c) Increased by £3,200,000 d) Decreased by £3,200,00 Which of the above option is correct ?
Q) On 1 February 2021, a parent made a long-term loan of £40 million to its subsidiary. The interest on the loan is 8% per annum and is payable every six months, starting 1 May, 2021. The year end is 30 April 2021. The group finance charges figure for the period is: a) Increased by £800,000 b) Decreased by £800,000 c) Increased by £3,200,000 d) Decreased by £3,200,00 Which of the above option is correct ?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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Q) On 1 February 2021, a parent made a long-term loan of £40 million to its
subsidiary. The interest on the loan is 8% per annum and is payable every six
months, starting 1 May, 2021. The year end is 30 April 2021. The group
finance charges figure for the period is:
a) Increased by £800,000
b) Decreased by £800,000
c) Increased by £3,200,000
d) Decreased by £3,200,00
Which of the above option is correct ?
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