What is the total interest paid to the end of March

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Question - Company A has a $5,000,000 line of credit with Bank B.

The bank charges 6% on any borrowed fund and 0.25% on any unused amount. The following is Co A's activities on this line for the first two quarters of this year.

1: Borrow $1,500,000 on the 15th of January and an additional $1,500,000 on the 1st of February.

2: Pay back $1,000,000 on the 15th of April.

Required - What is the total interest paid to the end of March? In fact, the question that I have is how to calculate the Interest for the next month (February) when the question gives you quarter periods.

Reference no: EM133011102

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