On the April 12 interest payment date, the outstanding balance on Eastern Yard Service's revolving loan was $2,500. The floating interest rate on the loan stood at 6.0% on April 12, but rose to 6.5% on April 14, and to 7.25% on April 28. If Eastern Yard Service made a principal payment of $500 on April 30, what were the interest charges to its bank account on May 12?

On the April 12 interest payment date, the outstanding balance on Eastern Yard Service's revolving loan was $2,500. The floating interest rate on the loan stood at 6.0% on April 12, but rose to 6.5% on April 14, and to 7.25% on April 28. If Eastern Yard Service made a principal payment of $500 on April 30, what were the interest charges to its bank account on May 12?

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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