BMI Ltd. had arranged with the bank for a 6 month line of credit of $200,000 at prime plus 2%. Prime rate is 4%. The bank charges 0.5% commitment fee on any unused balance. BMI Ltd. ended up using only $160,000 for 4 months.

Calculate the total cost of financing for the Line of Credit below:

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Marked out of 3.00

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a. On the BMI Line of Credit: what is the total interest charged: $ Answer

Question 25

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Marked out of 3.00

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b. On the BMI Line of Credit: what is the total commitment fee charged: $ Answer

A bank makes a 8% $100,000 discount loan for one year. What is the real effective interest rate (to 2 decimals) on the loan?

Enter only numbers and decimal: Answer %

Prepare an Aging Schedule for the following Accounts Receivable as at June 30, 2020. Use the following headings: Current Overdue 1-30 days Overdue 31-60 days Overdue 60 days+ ABC Company May 5, 2020 $2,000 Dollar Value June 12, 2020 5,000 Budget Cars April 13, 2020 3,000 Quik Delivery March 9, 2020 1,000 Best Books April 26, 2020 2,000 Fast Pizza June 24, 2020 7,000 Total Accounts Receivable $20,000 What percentage (%) of the total accounts receivable is 31-60 days overdue as at June 30, 2020? Enter only numbers and decimal (do not use a % sign): Answer %