Acme,Inc.has prepared its third quarter budget and provided the following data:

The cash balance on June 30 is projected to be $4,300.The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls.It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%.All 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.How much will the company have to borrow at the end of July?
A)$0
B)$5,000
C)$15,000
D)$10,000

Question

Acme,Inc.has prepared its third quarter budget and provided the following data:

The cash balance on June 30 is projected to be $4,300.The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls.It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%.All 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.How much will the company have to borrow at the end of July?
A)$0 
B)$5,000 
C)$15,000 
D)$10,000

Quizplus · Accepted Answer

D) 11ea8a42_4fa2_df7e_8b44_f1dfc945c6cc_TB5024_00

Acme,IncHas Prepared Its Third Quarter Budget and Provided the Following