Omega Construction, Inc., has a $100,000 line of credit with the Valley National Bank. The annual percentage rate is the current prime rate plus The balance on June 1 was $52,900. On June 8, Precision borrowed $30,600 to pay for a shipment of lumber and roofing materials and on June 18 borrowed another $12,300 for equipment repairs. On June 28, a $35,000 payment was made on the account. The billing cycle for June has 30 days. The current prime rate is
a. What is the finance charge on the account?
b. What is Omega’s new balance?