Cordier finances a power station with a specific borrowing whose actual costs for the year are 90,000. For 6 months, part of the funds not yet spent, 1,500,000, is temporarily invested at 2 % a year. Calculate the investment income, then the amount of borrowing costs eligible for capitalisation.
- Actual costs of the borrowing
- 90,000
- Unspent funds invested
- 1,500,000
- Annual investment rate
- 2 %
- Investment period
- 6