The business owner's family surprises the owner by purchasing the necessary equipment for the business, so...

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The business owner's family surprises the owner by purchasing the necessary equipment for the business, so the bank loan is no longer needed. However, the business owner needs some working capital to start hiring and training workers, and for purchasing raw materials. The business owner obtains a business line of credit at a local bank. The owner borrows $20,000 on the line of credit. The annual interest rate is 6%. For the questions below, I suggest you show your work to improve your chances of receiving partial credit for any incorrect final answers! 9. What is the daily interest rate the business owner must pay? 10. How much interest will the business owner be charged on $20,000 per day? 11. Suppose the business owner pays the loan back in full after 60 days. How much does the business owner have to pay back, including both the original $20,000 borrowed and the interest charged through the line of credit? 12. Suppose the business owner borrowed $20,000, then paid back $5,000 after 30 days, and then paid back the remaining $15,000 after another 30 days had passed (thus the owners borrows money for a total of 60 days). How much does the business owner have to pay back, including both the original $20,000 borrowed and the interest charged through the line of credit? The business owner's family surprises the owner by purchasing the necessary equipment for the business, so the bank loan is no longer needed. However, the business owner needs some working capital to start hiring and training workers, and for purchasing raw materials. The business owner obtains a business line of credit at a local bank. The owner borrows $20,000 on the line of credit. The annual interest rate is 6%. For the questions below, I suggest you show your work to improve your chances of receiving partial credit for any incorrect final answers! 9. What is the daily interest rate the business owner must pay? 10. How much interest will the business owner be charged on $20,000 per day? 11. Suppose the business owner pays the loan back in full after 60 days. How much does the business owner have to pay back, including both the original $20,000 borrowed and the interest charged through the line of credit? 12. Suppose the business owner borrowed $20,000, then paid back $5,000 after 30 days, and then paid back the remaining $15,000 after another 30 days had passed (thus the owners borrows money for a total of 60 days). How much does the business owner have to pay back, including both the original $20,000 borrowed and the interest charged through the line of credit?

Answer rating: 100% (QA)

9 We may use the following formula to get the daily interest rate that the company owner is required to pay on the line of credit Daily interest rate equals annual interest rate365 As the yearly inter... View the full answer