A firm has a 75000 line of credit the annual percentage


A firm has a $75,000 line of credit. The annual percentage rate is the current prime rate plus 4.5%. The balance on November 1 was $12,300. On November 7, the firm borrowed $16,700 to pay for merchandise, and on November 21 it borrowed another $8,800. On November 26, a $20,000 payment was made on the account. The billing cycle for November has 30 days. If the current prime rate is 8 ½%, what is the finance charge on the account, and what is the firm’s new balance? (Using the daily average balance method)

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Financial Accounting: A firm has a 75000 line of credit the annual percentage
Reference No:- TGS01695350

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