Jung pays prime + 2.25% on his small business line of credit. On the 10th of each month, interest is calculated (up to but not including the 10th) and deducted from the company's chequing account. Jung's first loan advance of $11,275 was made on May 18, followed by a further advance of $10,260 on June 21. The prime rate was at 2.85% on May 18 and rose to 3.05% on June 26. How much interest was charged on June 10 and July 10?

Jung pays prime + 2.25% on his small business line of credit. On the 10th of each month, interest is calculated (up to but not including the 10th) and deducted from the company's chequing account. Jung's first loan advance of $11,275 was made on May 18, followed by a further advance of $10,260 on June 21. The prime rate was at 2.85% on May 18 and rose to 3.05% on June 26. How much interest was charged on June 10 and 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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