ogi’s Construction has a $100,000 line of credit at the Jellystone Bank. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was $22,500. On October 10, Yogi borrowed $15,000 to pay for a shipment of lumber and on October 20 he borrowed another $32,500 for equipment repairs. On October 25, Yogi made a $25,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. Hint: Use the average daily method to determine the finance Charge!
ogi’s Construction has a $100,000 line of credit at the Jellystone Bank. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was $22,500. On October 10, Yogi borrowed $15,000 to pay for a shipment of lumber and on October 20 he borrowed another $32,500 for equipment repairs. On October 25, Yogi made a $25,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. Hint: Use the average daily method to determine the finance Charge!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ogi’s Construction has a $100,000 line of credit at the Jellystone Bank. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was $22,500. On October 10, Yogi borrowed $15,000 to pay for a shipment of lumber and on October 20 he borrowed another $32,500 for equipment repairs. On October 25, Yogi made a $25,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%.
Hint: Use the average daily method to determine the finance Charge!
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