A Medical Facility Arranges a Five-Year $50,000 Line of Credit

Multiple Choice

A medical facility arranges a five-year $50,000 line of credit with its bank with a monthly interest rate of 0.4%. The facility borrowed $10,000 initially but paid that off six months later. Two more months have passed with no additional borrowing. What will the line of credit interest expense be for the most recent month?

A) $40
B) $200
C) $0
D) $80