Multiple Choice
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.
A) $21,884
B) $6,884
C) $9,467
D) $55,667
Correct Answer:
Verified
Correct Answer:
Verified
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