Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.

Question:

Sheridan Service has a loan with the bank. The initial loan balance was $6000. Payments of $2000 and $3000 were made after four months and nine months, respectively. At the end of one year, Sheridan Service borrowed an additional $4000. Six months later, the loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the interest was 9% compounded monthly?
Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...