Question

Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,300. On October 4 they made a payment of $1,200. On October 13 the business borrowed $2,700, and on October 19 they borrowed $4,200.

If the current prime rate is 8%, what is the new balance (in $)? (Round your answer to the nearest cent.)

Answer 1