I5) A3+ has prepared its 3rd quarter budget and provided the following date: The cash balance on
Question:
I5) A3+ has prepared its 3rd quarter budget and provided the following date:
The cash balance on June 30 is projected to be $4,001 The company has to maintain a minimum cash balance of 55,003 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000and has to pay interest every month at an annual rate of 5%. AU financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. 1 low much will the company have to borrow at the end of August?
A) $15,000
B) $5,000
C) $10,000
D) $20,000
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta