Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00. Payments of $2000.00 and $3000.00 were made after four months and seven months respectively. At the end of one year, Sheridan Service borrowed an additional $3500.00. Eight months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 8% compounded monthly? ... The amount of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00. Payments of $2000.00 and $3000.00 were made after four months and seven months respectively. At the end of one year, Sheridan Service borrowed an additional $3500.00. Eight months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 8% compounded monthly? ... The amount of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00. Payments of $2000.00 and $3000.00 were made after four
months and seven months respectively. At the end of one year, Sheridan Service borrowed an additional $3500.00. Eight months later, the line of credit loan was
converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 8% compounded monthly?
The amount of the loan is $.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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