Franklin Company Obtained a $155,000 Line of Credit from the State

question 16

Multiple Choice

Franklin Company obtained a $155,000 line of credit from the State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 2% above the bank's prime lending rate. The bank's prime rate of interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month. Borrowing is shown as a positive amount and repayments are shown as negative amounts indicated by parentheses. $\begin{array}{lrr}&\text { Amount Borrowed (Repaid) }&\text { Prime Rate for the Month }\\1 \text {-January } & \$ 50,000 & 4.0 \% \\\text { 1-February } & (20,000) & 4.5\% \\\text { 1-March } & 50.000 & 5.0 \%\end{array}$
Based on this information alone, the amount of interest expense recognized in March would be closest to: (Do not round intermediate calculations. Round your answer to the nearest whole number.)

• A) $267.
• B) $300.
• C) $333.
• D) $467.

Comprehend the influence of proximity and familiarity on friendship formation and relationship development.

Grasp the physical attractiveness stereotype and its implications across different contexts, including work, politics, and personal judgments.

Explore the factors influencing approach behavior in initial onteractions and the role of physical attractiveness.

Identify the fundamental lesson of social psychology regarding the interaction between the individual and the environment.

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Definitions:

Issues Management

The process of identifying, assessing, and responding to potential issues or risks that could impact an organization, in order to mitigate negative effects.

Warranty Repairs

Services provided to fix or replace a product within the warranty period at no charge to the customer, under the terms of the warranty agreement.

Keyboard Defect

A flaw or malfunction in a computer keyboard, which can hinder the user's ability to input data efficiently and accurately.

Corporate Crisis

A significant business problem that threatens the reputation or financial stability of a company, requiring immediate action.