Answer: 10%
Explanation:
Since the interest from July 1, 2019 to December 31, 2019 is given as $30,000. The interest for the remaining 3 months to March 31, 2020 will be:
= $30,000/2 = $15,000.
Total interest = $30000 + $15000
= $45000
Total amount to be paid by Sky = $645,000
Amount to be paid without interest = $645000 - $45000
= $600,000
We then calculate the interest rate for 9 months from March to December. This will be:
= ($45,000 × 100) = $600,000 × R × 3/4
= $4,500,000 = $600,000 × 0.75 × R
= $4,500,000 = $450,000 ×R
Interest rate = $4,500,000/$450,000
Interest rate = 10%
The imputed annual interest rate is 10%
