Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please show how to calculate the interest for this

Please show how to calculate the interest for this problem. 2 Knox,...

70.2K

Verified Solution

Question

Accounting

Please show how to calculate the interest for this problem.

image

2 Knox, Inc. is planning to end January with a cash balance of $46,000 and no outstanding debt. For February, budgeted cash receipts total $110,000 and budgeted cash disbursements total $120,000. The company has an arrangement with its bank to borrow any amount on the first of any month, but the bank requires cash payment of 1% monthly interest on the outstanding borrowing at the end of each month. Knox is heading into its busy season and would like to build its cash reserves. If the company desires a February minimum ending cash balance of $60,000, to the nearest dollar, the minimum amount they would need to borrow at the beginning of the month is closest to be: $ 4,000 $ 23,763 C. $ 24,243 70,708 None of the above A. B. S D. E

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

Heat Capacity Learning Goal: To understand the concepts of heat capacity, specific heat, and molar heat capacity. Heat capacity,...

Chemistry
Q

1.How many coulombs are required to produce 47.9 g of cobalt metal from a solution of...

Chemistry
Q

Explain Homeostasis as it applies to the Nervous System and how it acts to protects us...

Medical Sciences
Q

c Let f x 15x3 x 2 Find f 1

Basic Math
Q

Find the slope of the line shown If the slope is undefined input DNE 4104...

Algebra
Q

Strategic meeting results in the following: Reach out to the NYC Sports Community and illustrate...

Accounting
Q

REQUIRED Calculate the following from the information provided below: 3.2.1 The total variable costs if...

Accounting
Q

Ursula works as a Senior Account Manager for Decorous Stone and Tile ("Deco"), a Canadian...

Accounting
Q

Present value. The State of Confusion wants to change the current retirement policy for state...

Finance
Q

i need the answer quickly E ANNUITY IF THE FIRST CASH FLOWS HAPPENS TODAY

Finance
Q

Effect of net income on a firm's balance sheet: Conrad Air, Inc., reported a net...

Finance
Q

Consider the case of Turnbull Co. Turnbull Co. has a target capital structure of 45%...

Finance