Question

Ho Electronics has a $45,000 line of credit which charges an annual percentage rate of prime...

Ho Electronics has a $45,000 line of credit which charges an annual percentage rate of prime rate plus 5.5%. Their starting balance on June 1 was $9,850. On June 4 they borrowed $4,300. On June 13 the business made a payment of $2,400, and on June 19 they borrowed $5,200. If the current prime rate is 3%, what is the new balance?

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of...
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.)
The Jewelry Exchange has a $20,000 line of credit with Nations Bank. The annual percentage rate...
The Jewelry Exchange has a $20,000 line of credit with Nations Bank. The annual percentage rate is the current prime rate plus 4.3%. The balance on March 1 was $8,600. On March 6, the company borrowed $6,900 to pay for a shipment of supplies, and on March 17, it borrowed another $4,000 for equipment repairs. On March 24, a $9,500 payment was made on the account. The billing cycle for March has 31 days. The current prime rate is 8%....
Mary owes an amount of $1,220 on her credit card. The annual percentage rate (APR) is...
Mary owes an amount of $1,220 on her credit card. The annual percentage rate (APR) is 18.00%, compounded monthly. Her minimum monthly payment is $20. a. If she makes only this minimum payment, how long will it take to repay the card balance (assuming no more charges are made)? b. If she makes the minimum payment plus $10 extra each month (for a total of $30), how long will it take to repay the card balance?
Exercise 7-11 Accounting for a line of credit LO 7-6 Colson Company has a line of...
Exercise 7-11 Accounting for a line of credit LO 7-6 Colson Company has a line of credit with Federal Bank. Colson can borrow up to $390,500 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of 2018. Colson agreed to pay interest at an annual rate equal to 3.00 percent above the bank’s prime...
Singer Company has a line of credit with United Bank. Singer can borrow up to $374,000...
Singer Company has a line of credit with United Bank. Singer can borrow up to $374,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of Year 1. Singer agreed to pay interest at an annual rate equal to 2.00 percent above the bank’s prime rate. Funds are borrowed or repaid on the...
Singer Company has a line of credit with United Bank. Singer can borrow up to $420,000...
Singer Company has a line of credit with United Bank. Singer can borrow up to $420,000 at any time over the course of the 2016 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of 2016. Singer agreed to pay interest at an annual rate equal to 1.50 percent above the bank’s prime rate. Funds are borrowed or repaid on the first day...
Colson Company has a line of credit with Federal Bank. Colson can borrow up to $403,000...
Colson Company has a line of credit with Federal Bank. Colson can borrow up to $403,000 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of 2018. Colson agreed to pay interest at an annual rate equal to 2.50 percent above the bank’s prime rate. Funds are borrowed or repaid on the first day...
36. James has a revolving credit account at an annual percentage rate of 18%. Use the...
36. James has a revolving credit account at an annual percentage rate of 18%. Use the average daily balance method to find the new balance given the following activity. Statement of Account Billing Cycle: May 1–31 May 1 Balance $239.28 May 9 Payment 45.30 May 18 Yo Yogurt (credit) 67.83 May 26 Fresh Flowers 92.33 May 30 Liu Printing 81.88 a. $295.85 b. $300.36     c. $303.33 d. $336.03
Mott Company has a line of credit with Bay Bank. Mott can borrow up to $400,000...
Mott Company has a line of credit with Bay Bank. Mott can borrow up to $400,000 at any time over the course of the 2018 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during 2018. Mott agreed to pay interest at an annual rate equal to 1 percent above the bank’s prime rate. Funds are borrowed or repaid on the first day of each month. Interest is...
Question 1 Company A has a line of credit with the bank. Company A can borrow...
Question 1 Company A has a line of credit with the bank. Company A can borrow up to $100,000 at prime plus 2%. In January, the company borrowed 20,000. In February, repaid $4,000. If prime for February is 4%, how much interest expense does Company A report on the income statement in February? Question 2 On January 1, 2018, Company B borrowed 50,000 signing a 3-year installment note payable with yearly cash payments of $19,402 due each December 31. Assuming...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT