Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If a business has a line of credit worth $1,000,000 with a bank and the terms state the used portion has a 4% rate and
If a business has a line of credit worth $1,000,000 with a bank and the terms state the used portion has a 4% rate and the unused portion has a .6% rate, how much total interest would the business pay if it uses half of the credit available? What would the overall rate of interest paid (based only on the amount used) be?
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