Q: McKenzie Wood Products negotiated a $200,000 revolving line of
McKenzie Wood Products negotiated a $200,000 revolving line of credit with the Bank of Montreal at prime plus 2%. On the 20th of each month, interest is calculated (up to but not including the 20th) a...
See AnswerQ: On the June 12 interest payment date, the outstanding balance on
On the June 12 interest payment date, the outstanding balance on Delta Nurseries’ revolving loan was $65,000. The floating interest rate on the loan stood at 6.25% on June 12, but rose to 6.5% on July...
See AnswerQ: Scotiabank approved a $75,000 line of credit for Curved
Scotiabank approved a $75,000 line of credit for Curved Comfort Furniture on the security of its accounts receivable. Curved Comfort drew down $30,000 on October 7, another $15,000 on November 24, and...
See AnswerQ: Shoreline Yachts has a $1 million line of credit with the
Shoreline Yachts has a $1 million line of credit with the RBC Royal Bank, secured by its inventory of sailboats. Interest is charged at the floating (naturally!) rate of prime plus 2% on the 10th of e...
See AnswerQ: Hercules Sports obtained a $60,000 operating line of credit
Hercules Sports obtained a $60,000 operating line of credit on March 26. Interest charges at the rate of prime plus 3.5% were deducted from its chequing account on the 18th of each month. Hercules too...
See AnswerQ: Benjamin has a $20,000 personal line of credit at
Benjamin has a $20,000 personal line of credit at prime plus 2% with his credit union. His minimum end-of-month payment is the greater of $100 or 3% of the combined principal and accrued interest. Aft...
See AnswerQ: Bronwyn’s $15,000 line of credit is at prime plus
Bronwyn’s $15,000 line of credit is at prime plus 2.5%. The minimum payment (the greater of $100 or 3% of the combined principal and accrued interest) is automatically deducted from her chequing accou...
See AnswerQ: Sarah’s Canada Student Loans totalled $9400 by the time she graduated
Sarah’s Canada Student Loans totalled $9400 by the time she graduated from Georgian College in May. She arranged to capitalize the interest on November 30 and to begin monthly payments of $135 on Dece...
See AnswerQ: Harjap completed his program at Nova Scotia Community College in December.
Harjap completed his program at Nova Scotia Community College in December. On June 30, he paid all of the interest that had accrued (at prime plus 2.5%) on his $5800 Canada Student Loan during the six...
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