Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pleasw help! Suppose your business has secured a line of credit and receives the accompanying statoment of account for the month of October. The limit

pleasw help!
image text in transcribed
Suppose your business has secured a line of credit and receives the accompanying statoment of account for the month of October. The limit an your line of credit is $1000.00. You recelve daily interest of 1.8% p.a. on positive balances and pay daiy interest of 7% p.a. on negative (ine of credit) balances. Overdraft interest is 18% p.a an the daily amount exceeding your line of credit limi. There is a service charge of 55.00 for each transaction causing an overufat or adding to an overdraft. Use this information to complete parts (a) through (e) below. Click the icon to view the statement for the month of October. October Statement (a) Calculate the amount of interest eamed. Total interest eamed =$ (Round the final answer to the nearest cent as needed. Round all in (b) Calculate the amount of interest charged on the line of credit. Total line of credit interost charged =$ (Round the final answer to the nearest cent as needed. Round all in) (c) Calculate the amount of interest charged on overdrafts: Overdtaf interest =$ (Round the final answer to the nearest cent as needed. Round at in) (d) Calculate the amount of service charge

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Management Audit How To Create An Effective Management Team

Authors: Michael Craig-Cooper, Philippe De Backer

1st Edition

0273600044, 978-0273600046

Students also viewed these Accounting questions

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is human nature?

Answered: 1 week ago