Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / An automotive dealer borrowed $7300
An automotive dealer borrowed $7300.00 from the Bank of Montreal on a demand note on May 5. Interest on the? loan, calculated on the daily? balance, is charged to the? dealer's current account on the 5th of each month. The automotive dealer made a payment of ?$1700 on July 21?, a payment of ?$3600 on October? 1, and repaid the balance on December 1. The rate of interest on the loan on May 5 was 4?% per annum. The rate was changed to 4.25?% on August 1 and to 4.5?% on October 1. What was the total interest cost for the? loan?
Instruction: For a demand? loan, the interest is charged on the unpaid balance. Each? day, the interest is calculated and then any principal payment is subtracted from the balance.
