# Sample Accounting Paper on EFFECTIVE RATE INTEREST

## Sample Accounting Paper on EFFECTIVE RATE INTEREST

1. A) EFFECTIVE RATE INTEREST

R=(1+i/n) ^n-1

R= (1+34000/1) ^1-1

= (1+3400) ^1

(3401) ^0

3401

B)

360/50

7.2

900000*7.2

6480000

C)900000=100%

15%

135000

D)

R=(1+I/N) ^n-1

R= (1+27000/1) ^1-1

R= (27001) ^0

R=27001

CASE 4

• Creating efficient accounts receivable collection. This makes it suitable for a business because one is able to archive the process since as a manager you are going to manage the amount of cash which is moving into the business books of accounts
• Keeping adequate expense control. As a control. As manager you are supposed to be able to control all the necessary expenses and the miscellaneous expenses.
• Take advantage of excess cash. When there occurs excess cash in the bank you are supposed to be able to give out loans since they act as an asset to the bank since the bank is able to earn its money through the interest rates.

In order to manage the idle money, one is able to:

• To be able to know the amount of the gross income which is going to be achieved during the financial period.
• List all the amount of the fixed expenses which is going to be incurred during the financial period.
• Determine the amount which should be able to be saved during the financial period.
• The remaining funds should be able to provide details concerning the expenses which have been generated in the financial period.
• Make plans for the future of the business.ie retirement funds, home purchase, car purchase.
• You should be able to be in a position to create commitments during the month which will be able to keep the financial momentum going.