require an annual fee of 50,000 and an interest of 1% per month. On March 1, 2020, 3,000,000 is used up and will be paid the next year 2021. The annual fee will be paid every January 25 and the interest will be paid every 25th of the following month. KO0 Inc. paid the necessary payments on time. What is the total interest payable relating to the credit line as of December 31, 2020?
require an annual fee of 50,000 and an interest of 1% per month. On March 1, 2020, 3,000,000 is used up and will be paid the next year 2021. The annual fee will be paid every January 25 and the interest will be paid every 25th of the following month. KO0 Inc. paid the necessary payments on time. What is the total interest payable relating to the credit line as of December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2020, KOO Inc. got a credit line from a bank worth 5,000,000. The credit line would require an annual fee of 50,000 and an interest of 1% per month. On March 1, 2020, 3,000,000 is used up and will be paid the next year 2021. The annual fee will be paid every January 25 and the interest will be paid every 25th of the following month. KO0 Inc. paid the necessary payments on time. What is the total interest payable relating to the credit line as of December 31, 2020?
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