Soll Ltd provided a loan to Fargo Ltd on 1 November 2020 of which the capital portion is repayable in eleven equal annual instalments starting on 1 July 2021. Interest on the loan is calculated at 10% per annum and is payable at the end of each financial year.

The year-end of Soll Ltd is 31 December.

The outstanding balance on the loan, as at 31 December 2023, amounts to R540 000.

REQUIRED:

Which one of the following options represents the amount of interest received by Soll Ltd for the year ended 31 December 2023?



1.
R57 375


2.
R30 375


3.
R67 375


4.
R27 000