Erindale Automotive borrowed $8,800 from the Bank of Montreal on a demand note on May 10. Interest on the loan, calculated onthe daily balance, is charged to Erindale's current account (the separate interest method) on the 10th of each month. Erindale made apayment of $2,000 on July 20, a payment of $3,000 on October 1, and repaid the balance on December 1. The rate of interest on theloan on May 10 was 8% per annum. The rate was changed to 9.5% on August 1 and to 8.5% on October 1. What was the total interestcost for the loan?June 10Calculate the interest charged on June 10.July 10Calculate the interest charged on July 10.August 10Calculate the interest accrued to July 20.Calculate the new principal on July 20.Calculate the interest accrued to August 1.Calculate the interest accrued to August 10.Calculate the interest charged on August 10.September 10Calculate the interest charged on September 10.October 10Calculate the interest accrued to October 1.Calculate the new principal on October 1.Calculate the interest accrued to October 10. August 10Calculate the interest accrued to July 20.Calculate the new principal on July 20.Calculate the interest accrued to August 1.Calculate the interest accrued to August 10.Calculate the interest charged on August 10.September 10Calculate the interest charged on September 10.October 10Calculate the interest accrued to October 1.Calculate the new principal on October 1.Calculate the interest accrued to October 10.Calculate the interest charged on October 10.November 10Calculate the interest charged on November 10.December 1Calculate the interest charged on December 1.Calculate the total interest cost of the loan.11chabrery

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Erindale Automotive borrowed $8,800 from the Bank of Montreal on a demand note on May 10. Interest on the loan, calculated on the daily balance, is charged to Erindale's current account (the separate interest method) on the 10th of each month. Erindale mad payment of $2,000 on July 20, a payment of $3,000 on October 1, and repaid the balance on December 1. The rate of interest on th loan on May 10 was 8% per annum. The rate was changed to 9.5% on August 1 and to 8.5% on October 1. What was the total inter cost for the loan? June 10 Calculate the interest charged on June 10. July 10

Erindale Automotive borrowed $8,800 from the Bank of Montreal on a demand note on May 10. Interest on the loan, calculated on the daily balance, is charged to Erindale's current account (the separate interest method) on the 10th of each month. Erindale mad payment of $2,000 on July 20, a payment of $3,000 on October 1, and repaid the balance on December 1. The rate of interest on th loan on May 10 was 8% per annum. The rate was changed to 9.5% on August 1 and to 8.5% on October 1. What was the total inter cost for the loan? June 10 Calculate the interest charged on June 10. July 10

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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