Cook Security Systems has a $37,500 line of credit, which charges an annualpercentage rate of prime rate plus 4%. The starting balance on October 1was $9,300.On October 4 they made a payment of $1,800. On October 13 the businessborrowed $2,500, and on October 19 they borrowed $4,400. If the currentprime rate is 6%, what is the new balance (in $)? (Round your answer to thenearest cent.)$ 11,145.475X

Solution- Interest rate = 6% +4% = 10% Rate of interest charged each day = 10% / 360 = 0.02778%…

Answered: Cook Security Systems has a $37,500…

Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,300.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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