In the Jutang Credit Cooperative data, what is the interest income on loan granted to members?

• A. 900,000
• B. 50,000
• C. 3,000
• D. 683,000

Answer: (A)

Interest income on loan grants to members reflects the revenue the cooperative earns from lending to its members. In the Jutang Credit Cooperative data, this line item is 900,000, representing the total interest charged on member loans for the period. You can think of it as the overall return from the loan portfolio: the principal tied up in member loans times the applicable interest rates, summed across all loans.

For example, if total outstanding loans to members were about 5,000,000 and the average rate earned on those loans was 18%, the annual interest income would be 900,000, which aligns with the reported figure. The other numbers (50,000, 3,000, 683,000) correspond to different line items or parts of revenue and do not represent interest earned on member loans, so they’re not the correct value for this item.