Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An automotive dealer borrowed $8400.00 from the Bank of Montreal on a demand note on May 7. Interest on the loan, calculated on the daily
An automotive dealer borrowed $8400.00 from the Bank of Montreal on a demand note on May 7. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 7th of each month. The automotive dealer made a payment of $1800 on July 17, a payment of $4600 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 7 was 5% per annum. The rate was changed to 5.25% on August 1 and to 5.6% on October 1. What was the total interest cost for the loan? The total interest cost for the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started