Erindale Automotive borrowed $8000 from the Bank of Montreal on a demand note on May 10. Interest on the loan, calculated on the daily balance, is charged to Erindale’s current account on the 10th of each month. Erindale made a payment of $2000 on July 20, a payment of $3000 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 10 was 8% per annum. The rate was changed to 9.5% on August 1 and to 8.5% on October 1. What was the total interest cost for the loan? Reference Example 8.3B