Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,100. On October 4 they made a payment of $1,400. On October 13 the business borrowed $2,700, and on October 19 they borrowed $4,600. If the current prime rate is 8%, what is the new balance (in $)? (Round your answer to the nearest cent.) $ [

Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,100. On October 4 they made a payment of $1,400. On October 13 the business borrowed $2,700, and on October 19 they borrowed $4,600. If the current prime rate is 8%, what is the new balance (in $)? (Round your answer to the nearest cent.) $ [

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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Question

Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,100.

On October 4 they made a payment of $1,400. On October 13 the business borrowed $2,700, and on October 19 they borrowed $4,600. If the current prime rate is 8%, what is the new balance (in $)? (Round your answer to the nearest cent.)

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