Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a firm has a $75,000 line of credit. the annual pe

A firm has a $75,000 line of credit. The annual percentage rate is the current...

90.2K

Verified Solution

Question

Accounting

A firm has a $75,000 line of credit. The annual percentage rate is the current prime rate plus 4.5%. The balance on November 1 was $12,300. On November 7, the firm borrowed $16,700 to pay for merchandise, and on November 21 it borrowed another $8,800. On November 26, a $20,000 payment was made on the account. The billing cycle for November has 30 days. If the current prime rate is 8 %, what is the finance charge on the account, and what is the firms new balance? (Using the daily average balance method)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1-A solution has a temperature change of 20 K. What is the temperature change in degree...

Chemistry
Q

Where and when did these two fossil species (Homo heidelbergensis and Homo neanderthalensis)  live? Why is Homo neanderthalensis considered...

Medical Sciences
Q

•Research/investigate existing teaching models, procedures, and methods, etc. that used to demonstrate the concept of third...

Mechanical Engineering
Q

Budgeted overhead cost $1,050,000 Estimated machine hours 50,000 Estimated direct labor hours 10,000 Estimated direct materials cost $1,500,000 Maverick’s inventory count, completed on...

Accounting
Q

deforestation reduces the majority of the vegetation in an area a native lizard population also...

Biology
Q

Q12 Using the data see table please answer the following question How many students are...

Biology
Q

Sketch the coordinate axes and then include the vectors u v and u xv as...

Calculus
Q

The payroll register of Castilla Engineering Co. indicates $1,086 of social security withheld and $271.50...

Accounting
Q

Consider the allocation of fund assets by region. Speculate as to why the proportions of...

Accounting
Q

You may use your financial calculator or excel for calculations but be sure to show...

Accounting
Q

The following is a system of simultaneous linear equations to allocate costs using the reciprocal...

Accounting
Q

On January 1, Year 1, Carrot, an individual, paid $17,200 for 5 percent of the...

Accounting