Matsumoto construction has a 100,000 line of credit at Bank of America. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was 22,500.00 On October 10, Matsumoto borrowed 15,000 to pay for a shipment of plants & on October 20 be borrowed another 32,500 for equipment repairs. On October 25 Matsumoto made a 25,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. Use the average daily method to determine the finance charge? What is Matsumotos new balance?
Matsumoto construction has a 100,000 line of credit at Bank of America. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was 22,500.00 On October 10, Matsumoto borrowed 15,000 to pay for a shipment of plants & on October 20 be borrowed another 32,500 for equipment repairs. On October 25 Matsumoto made a 25,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. Use the average daily method to determine the finance charge? What is Matsumotos new balance?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Matsumoto construction has a 100,000 line of credit at Bank of America. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was 22,500.00 On October 10, Matsumoto borrowed 15,000 to pay for a shipment of plants & on October 20 be borrowed another 32,500 for equipment repairs. On October 25 Matsumoto made a 25,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. Use the average daily method to determine the finance charge?
What is Matsumotos new balance?
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