Shoreline Yachts has a $1 million line of credit with the RBC Royal Bank, secured by its

Question:

Shoreline Yachts has a $1 million with the RBC Royal Bank, secured by its inventory of sailboats. Interest is charged at the floating (naturally!) rate of prime plus 2% on the tenth of each month. On February 10 (of a non-leap year), the loan balance stood at $770,000 and the prime rate at 6.5%. Shoreline took an additional $100,000 draw on March 1. Spring sales enabled Shoreline to make payments of $125,000 and $150,000 against the principal on March 30 and April 28. The prime rate rose by 0.5% on April 8. What total interest was Shoreline charged for the three months from February 10 to May 10? Present a repayment schedule showing how this interest figure was determined.
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...