Scotiabank approved a $250,000 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 27th of each month, which is automatically deducted from the chequing account of Buhler Industries. Buhler took out an advance on December 2 for $200,000 and made a payment of $125,000 on January 12. The prime rate was 6.5% initially and increased to 7.5% on January 4. Calculate the total interest charged to Buhler Industries on December 27 and January 27
Scotiabank approved a $250,000 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 27th of each month, which is automatically deducted from the chequing account of Buhler Industries. Buhler took out an advance on December 2 for $200,000 and made a payment of $125,000 on January 12. The prime rate was 6.5% initially and increased to 7.5% on January 4. Calculate the total interest charged to Buhler Industries on December 27 and January 27
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Scotiabank approved a $250,000 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 27th of each month, which is automatically deducted from the chequing account of Buhler Industries. Buhler took out an advance on December 2 for $200,000 and made a payment of $125,000 on January 12. The prime rate was 6.5% initially and increased to 7.5% on January 4. Calculate the total interest charged to Buhler Industries on December 27 and January 27. |
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