On December 27,2012,Terrell Corp

question 128

Essay

On December 27,2012,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 2013. Determine the amount of interest to be paid at the end of each of the three months.

---

Definitions:

Standard Deviation

A quantification of the degree to which a set of values is spread out or dispersed, indicating the extent of deviation from the average value.

Confidence Interval

A set of values that comes from sample statistics, expected to encompass the value of a parameter from an unknown population.

Sample Mean

The average value calculated from a sample of data, representing the central tendency of the sample.

Population Standard Deviation

A measure of the dispersion or variability in a population data set.