Change Entity had the following borrowing on January 1 of the current year. The borrowings were made for general purposes and the proceeds were partly used to finance the construction of a new building. 10% bank loan, 2,800,000 - 280,000 annual interest 10% short-term note, 1,600,000 - 160,000 annual interest 12% long-term loan, 2,000,000 - 240,000 annual interest The construction of the building was started on January 1 and was completed on December 31 of the current year. Expenditures on the building were made as follows: January 1 - 400,000; March 31 - 1,000,000; June 30 - 1,200,000; September 30 - 1,000,000; December 31 - 400,000. (Round off the capitalization rate to 3-decimal). What is the average expenditure?
Change Entity had the following borrowing on January 1 of the current year. The borrowings were made for general purposes and the proceeds were partly used to finance the construction of a new building.
10% bank loan, 2,800,000 - 280,000 annual interest
10% short-term note, 1,600,000 - 160,000 annual interest
12% long-term loan, 2,000,000 - 240,000 annual interest
The construction of the building was started on January 1 and was completed on December 31 of the current year. Expenditures on the building were made as follows: January 1 - 400,000; March 31 - 1,000,000; June 30 - 1,200,000; September 30 - 1,000,000; December 31 - 400,000. (Round off the capitalization rate to 3-decimal). What is the average expenditure?
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