Suppose that the treasurer of ABC Ltd decided not to pool cash to the central master account, instead each subsidiary

Suppose that the treasurer of ABC Ltd decided not to pool cash to the central master account, instead each subsidiary

Question:

Suppose that the treasurer of ABC Ltd decided not to pool cash to the central master account, instead each subsidiary manages their cash. If the bank lending rate is 6% and the borrowing rate is 4%, which of the following represents the aggregate interest earned/paid by the subsidiaries? a. R11 400 paid b. R42 000 paid. c. R53 400 paid. d. R60 000 paid.

Expert Answer:

Answer rating: 100% (QA)

To calculate the aggregate interest earned paid by the subsidiaries we need to find the net int
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