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  3. home run sports has an operating loan with cibc. t

Home Run Sports has an operating loan with CIBC. The interest rate is set at...

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Accounting

Home Run Sports has an operating loan with CIBC. The interest rate is set at prime +3.25%, and on the 17th of every
month a payment in the amount of 4% of the current balance is automatically taken from the borrowers chequing
account. The prime rate is currently 5.75%. On March 7, Home Run Sports took a first advance of $6,000. It took
additional advances of $10,000, $8,000, and $12,000 on March 28, April 17, and May 24, respectively. It made payments
of $4,000, $2,500, and $10,000 on April 10, May 17, and May 29. The prime rate increased by 0.25% on March 31 and
by an additional 0.25% on May 31. Create a repayment schedule and calculate the total interest paid from March 7 to
June 17.

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