Management would like to maintain a minimum cash balance of

Reference no: EM13600298

Management would like to maintain a minimum cash balance of at least $3,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.how can i get interest?

Reference no: EM13600298

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