O'Reilly,Inc.has prepared its third quarter budget and provided the following data:

The cash balance on June 30 is projected to be $4,200.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 4%.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.Calculate the amount of principal repayment at the end of September.
A)$5,000
B)$10,000
C)$15,000
D)$20,000

Question

O'Reilly,Inc.has prepared its third quarter budget and provided the following data:

The cash balance on June 30 is projected to be $4,200.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 4%.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.Calculate the amount of principal repayment at the end of September.
A)$5,000 
B)$10,000 
C)$15,000 
D)$20,000

Quizplus · Accepted Answer

D) 11ea8a42_4fa3_2da6_8b44_c1e8d95de364_TB5024_00