Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. thompson inc. has a $10m revolving credit agreemen

Thompson Inc. has a $10M revolving credit agreement with its bank. It pays interest on...

50.1K

Verified Solution

Question

Accounting

Thompson Inc. has a $10M revolving credit agreement with its bank. It pays interest on borrowing at 2% over prime and a % commitment fee on available but unused funds. Last month Thompson had borrowings of $5M for the first half of the month and $10M for the second half. Calculate its interest charges for the month. The banks prime rate is 6%.

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Many individuals prefer to lease their vehicles rather than buy them. A new Cadillac CTSV can...

Programming
1.2K views

in java What object is passed to the start method in a JavaFX program? What should...

Biology
1.2K views

ground Layout Theme Transition The small intestine is coiled in the body cavity and held...

Physics
1.2K views

A simple pendulum of length Li from a point object of mass m by a...

Physics
1.2K views

12 cells each of emf 1 5 V and internal resistance 0 5 2 are...

Accounting
1.2K views

Oceanic Company has 10,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares...

Accounting
1.2K views

Kiddy Toy Corporation needs to acquire the use of a machine to be used in...

Accounting
1.2K views

250-300 worda please Task 2 - Discuss the following concept in detail...

Accounting
1.2K views

Example 6.16. Find the missing values in the following data 45 55 50 60 65...

Accounting
1.2K views

The maximum capital loss deductible in any one year by a taxpayer is generally $3,000...

Accounting
1.2K views

Comment on how a business owner can plan asset acquisitions to fully utilize the Section...

Accounting
1.2K views

Modules and Integration Payroll & Fixed Assets B Update FA cards manually E Fixed Asset...