The Tomac Swim Club arranged short-term financing of $12,500 on July 20 with the Bank of Commerce and secured the loan with a demand note. The club repaid the loan by payments of $5,000 on September 15, $4,000 on November 10, and the balance on December 30. Interest, calculated on the daily balance and charged to the club's current account on the last day of each month (the separate interest method), was at 9.5% per annum on July 20. The rate was changed to 8.5% effective September 1 and to 9% effective December 1. How much interest was paid on the loan? July 31 Calculate the interest charged on July 31. August 31 Calculate the interest charged on August 31. Sentembor 31

The Tomac Swim Club arranged short-term financing of $12,500 on July 20 with the Bank of Commerce and secured the loan with a demand note. The club repaid the loan by payments of $5,000 on September 15, $4,000 on November 10, and the balance on December 30. Interest, calculated on the daily balance and charged to the club's current account on the last day of each month (the separate interest method), was at 9.5% per annum on July 20. The rate was changed to 8.5% effective September 1 and to 9% effective December 1. How much interest was paid on the loan? July 31 Calculate the interest charged on July 31. August 31 Calculate the interest charged on August 31. Sentembor 31

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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