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Homework answers / question archive / Suppose your business has secured a line of credit and receives the accompanying statement of account for the month of May
Suppose your business has secured a line of credit and receives the accompanying statement of account for the month of May. The limit on your line of credit is $1000.00. You receive daily interest of 1.4% p.a. on positive balances and pay daily interest of 6% p.a. on negative (line of credit) balances. Overdraft interest is 20% p.a. on the daily amount exceeding your line of credit limit. There is a service charge of $5.00 for each transaction causing an overdraft or adding to an overdraft Use this information to complete pans (a) through (e) below. Click the icon to view the statement for the month of May. X May Statement Deposit Withdrawal Balance May (a) Calculate the amount of interest earned Total interest earned = $0 (Round the final answer to the nearest cent as needed. Round all intermediate values to six (b) Calculate the amount of interest charged on the line of credit. Total line of credit interest charged= (Round the final answer to the nearest cent as needed. Round all intermediate values to six (c) Calculate the amount of interest charged on overdrafts. () Overdraft interests Round the final answer to the nearest cent as needed. Round all intermediate values to six Date 2 8 8 13 20 24 29 31 Transaction Description Balance Cheque 263 Cheque 204 Deposit Cheque 288 Cheque 288 595.00 240.00 2072.00 - 814.50 - 1209.50 - 1449.59 822.41 559.41 285.41 ? 63.00 274.00 Print Done (d) Calculate the amount of service charge. Service charge - $ ] (Round the final answer to the nearest cens as needed. Round all intermediate values to six (e) What is the account balance on May 31? The account balance on May 31 dollars. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
