Hi, I was just hoping for some help on a question. I dont understand how they got the second set of numbers. The 500, 0, 1000, and 750 makes sense but I'm confused about the 41.67, 250, 185.50

 

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11. David borrowed $50,000 from his employer on March 01, 2016 at 2% interest and repaid $25,000 on October 01, 2016. David used the loan proceeds to buy a Cottage. Assume the prescribed interest rates for 2016 are ( 3%, 2% ,4%,5%, ) What is the taxable amount to David for this loan from his employer? Borrows $50,000 Interest 2% Repays $25,000 Difference $25,000 Q1 Q2 Q3 Q4 Total 3% 2% 4% 5% 1% 0% 2% 3% 1-Mar-16 1-Oct-16 $500 $0 $1,000 $750 $2,250 $41.67 $250 $187.50 $479.17 11. David borrowed $50,000 from his employer on March 01, 2016 at 2% interest and repaid $25,000 on October 01, 2016. David used the loan proceeds to buy a Cottage. Assume the prescribed interest rates for 2016 are ( 3%, 2% ,4%,5%, ) What is the taxable amount to David for this loan from his employer? Borrows $50,000 Interest 2% Repays $25,000 Difference $25,000 Q1 Q2 Q3 Q4 Total 3% 2% 4% 5% 1% 0% 2% 3% 1-Mar-16 1-Oct-16 $500 $0 $1,000 $750 $2,250 $41.67 $250 $187.50 $479.17

Answer rating: 100% (QA)

Interest as per Market Rate Q1 50000 1 500 Q2 ... View the full answer