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A Company Borrowed $1 Million on 1 June 2018, with Principal

Question 1

Multiple Choice

A company borrowed $1 million on 1 June 2018, with principal and interest to be repaid in three years' time. The interest rate is 12 per cent per annum. What is the interest expense for the year ended 30 June 2018?


A) $0
B) $10 000
C) $120 000
D) None of the above

Correct Answer:

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