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ATQ,
Effective Rate: 16/2 = 8% per 6 months. Number of Periods: 24/6 = 4. Compound Interest Formula
Substitute values: A = 4000×(1.08)4 = 4000×1.3605 = ₹5,442.
Interest Earned = A−P = ₹5,442−₹4,000 = ₹1,442.
What will be the impact on Return on Equity (RoE) if cash is paid to the creditors?
Akash Ltd sells 3 products X, Y and Z. The following information was available at the year end :