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

The cash balance on June 30 is projected to be $4,100.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 final projected cash balance at the end of September.

Question

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

The cash balance on June 30 is projected to be $4,100.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 final projected cash balance at the end of September.

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B) 11ea8a42_4fa3_54b8_8b44_4923e5aef010_TB5024_00