Scotiabank approved a $280,000.00 line of credit for Buhler Industries at prime + 0.75%. It requires only the repayment of accrued interest on the 25th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 2 for $235,000.00 and made a payment of $195,000.00 on January 10. The prime rate was 6.75% initially and increased to 8% on January 3. Complete the repayment schedule below by filling in the payment and principal amounts. Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Dec 2 Dec 25 $235,000.00 7.5% Jan 3 $235,000.00 7.5% Jan 10 $235,000.00 8.75% Jan 25 $40,000.00 8.75% 23/365 $1,110.62 $1,110.62 $235,000.00 $235,000.00 9/365 $434.59 $434.59 $235,000.00 7/365 15/365 $143.84 $394.35 $828.94 $972.78 $40,000.00 $40,000.00
Scotiabank approved a $280,000.00 line of credit for Buhler Industries at prime + 0.75%. It requires only the repayment of accrued interest on the 25th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 2 for $235,000.00 and made a payment of $195,000.00 on January 10. The prime rate was 6.75% initially and increased to 8% on January 3. Complete the repayment schedule below by filling in the payment and principal amounts. Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Dec 2 Dec 25 $235,000.00 7.5% Jan 3 $235,000.00 7.5% Jan 10 $235,000.00 8.75% Jan 25 $40,000.00 8.75% 23/365 $1,110.62 $1,110.62 $235,000.00 $235,000.00 9/365 $434.59 $434.59 $235,000.00 7/365 15/365 $143.84 $394.35 $828.94 $972.78 $40,000.00 $40,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Scotiabank approved a $280,000.00 line of credit for Buhler Industries at prime + 0.75%. It requires only the repayment of accrued interest on the
25th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 2
for $235,000.00 and made a payment of $195,000.00 on January 10. The prime rate was 6.75% initially and increased to 8% on January 3.
Complete the repayment schedule below by filling in the payment and principal amounts.
Date
Balance Annual
before Interest
Transaction Rate
Number Interest Accrued
of Days Charged Interest
Payment
(+) or
Advance
Principal
Amount
Balance after
Transaction
(-)
Dec 2
Dec 25 $235,000.00 7.5%
Jan 3 $235,000.00 7.5%
Jan 10 $235,000.00 8.75%
Jan 25 $40,000.00 8.75%
23/365
$1,110.62 $1,110.62
$235,000.00
$235,000.00
9/365
$434.59 $434.59
$235,000.00
7/365
15/365 $143.84
$394.35 $828.94
$972.78
$40,000.00
$40,000.00
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