Question: answers with solutions 4. Chapter 8 - Questions a. A 5% promissory note for $10 000 was issued 183 days ago. How much cash is

answers with solutions

answers with solutions 4. Chapter 8 - Questions
4. Chapter 8 - Questions a. A 5% promissory note for $10 000 was issued 183 days ago. How much cash is needed today to pay the note? b. SportZ has secured a line of credit with the Bank of Alberta. The following transactions were made for the last month. The account receives daily interest of 1.5% p.a. on positive balances and pays daily interest of 8% p.a. on negative balances. The limit on the line of credit is $10 000. Overdraft interest of 19% p.a. is charged on the daily amount exceeding the line of credit limit. For each transaction causing an overdraft or adding to an overdraft, a service charge of $10 is applied. Calculate the interest, overdraft interest, service charges, and the month-end balance for the line of credit

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