Erindale Automotive borrowed $8,800 from the Bank of Montreal on a demand note on May 10. Interest on the loan, calculated on the daily balance, is charged to Erindale's current account (the separate interest method) on the 10th of each month. Erindale mad payment of $2,000 on July 20, a payment of $3,000 on October 1, and repaid the balance on December 1. The rate of interest on th loan on May 10 was 8% per annum. The rate was changed to 9.5% on August 1 and to 8.5% on October 1. What was the total inter cost for the loan? June 10 Calculate the interest charged on June 10. July 10
Erindale Automotive borrowed $8,800 from the Bank of Montreal on a demand note on May 10. Interest on the loan, calculated on the daily balance, is charged to Erindale's current account (the separate interest method) on the 10th of each month. Erindale mad payment of $2,000 on July 20, a payment of $3,000 on October 1, and repaid the balance on December 1. The rate of interest on th loan on May 10 was 8% per annum. The rate was changed to 9.5% on August 1 and to 8.5% on October 1. What was the total inter cost for the loan? June 10 Calculate the interest charged on June 10. July 10
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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