Chapter 8
Non-Current Liabilities
386
AS-12 (
1
)
Define market interest rate.
AS-13 (
2
)
If a company keeps money in a bank, the value of its money changes over time even if
nothing is done to it. What is this phenomenon called?
AS-14 (
2
)
Peter lent $100 to his friend Angela, who promised Peter that the principal would be repaid
after two years, with 10% compound interest per annum. Two years later, Peter received $120
from Angela. Did Angela fulfill her promise to Peter? Why or why not?
