On December 27, 2014, Terrell Corp Determine the Amount of Interest to Be Paid at the a Line

question 10

Essay

On December 27, 2014, Terrell Corp. signed an agreement for a line of credit with the Barnett Bank. Under the agreement, Terrell can borrow up to $50,000 at any time during the following year. Terrell will make any borrowings or paybacks on the first day of a month and make interest payments on the last day of any month when a balance exists. The annual interest rate will be the bank's prime rate plus 1% and will be applied to the outstanding monthly balance. The following table gives the appropriate information for the first three months of 2015. $\begin{array}{l}&\text { Amount Borrowed }\\\underline { \text { Month } } & \text { or (Repaid) } & \text { Prime Rate } \\\text { January } & \$ 20,000 & 4 \% \\\text { February } & 20,000 & 4.5 \% \\\text { March } & ( 15,000 ) & 5 \%\end{array}$
Determine the amount of interest to be paid at the end of each of the three months.

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Definitions:

Population Dispersion

The pattern of spacing among individuals within a geographic area, which can be uniform, random, or clumped.

Whooping Crane

A large North American bird species, noted for its white plumage and loud, whooping calls, currently endangered.

Emigration

The act of leaving one's own country to settle permanently in another, moving abroad.

Cyclic

Referring to occurrences or processes that exhibit a series of repeated events or stages which happen in a predictable sequence.