Hercules Sports obtained a $60,000 operating line of credit on March 26. Interest charges at the rate

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Hercules Sports obtained a $60,000 operating line of credit on March 26. Interest charges at the rate of prime plus 2.5% were deducted from its chequing account on the eighteenth of each month. Hercules took an initial draw of $30,000 on March 31, when the prime rate was 5%. Further advances of $10,000 and $15,000 were taken on April 28 and June 1. Payments of $5000 and $10,000 were applied against the principal on June 18 and July 3. The prime rate rose to 5.25% effective May 14. Present a repayment schedule showing details of transactions up to and including July 18.
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...
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