Question
A farm has a line of credit at a local bank with an upper limit of $200,000. The interest rate is 6% annually. On March
A farm has a line of credit at a local bank with an upper limit of $200,000. The interest rate is 6% annually. On March 1 they borrow $100,000. On July 1 they borrow another $50,000 and the bank raises the interest rate to 7% on the entire balance. On December 1 they repay the bank $120,000. How much is applied to interest and how much to principal?
Interest:
Principal:
Total:
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BondsA Concise Guide For Investors
Authors: M. Choudhry
2nd Edition
0230006493, 9780230006492
