2. Calculate the amount of interest and principal paid in each month based on the history of borrowing and payments on the line of credit. Using that information, find the outstanding balance as of that date. Assume that interest accrues over the course of the month. So, for example, any outstanding balance on January 1 has accrued one month of interest on February 1. Date $ Borrowed January 1 February 1 March 1 April 1 May 1 June 1 July 1 August 1 September 1 12,500 11,450 14,675 0 11,980 0 7,290 0 Interest $ Repaid Interest Paid Principal Paid Rate 8% 8% 7% 7% 7% 796 7% 8% 996 0 O 21,500 0 8,000 4,650 0 0 Outstanding Balance
2. Calculate the amount of interest and principal paid in each month based on the history of borrowing and payments on the line of credit. Using that information, find the outstanding balance as of that date. Assume that interest accrues over the course of the month. So, for example, any outstanding balance on January 1 has accrued one month of interest on February 1. Date $ Borrowed January 1 February 1 March 1 April 1 May 1 June 1 July 1 August 1 September 1 12,500 11,450 14,675 0 11,980 0 7,290 0 Interest $ Repaid Interest Paid Principal Paid Rate 8% 8% 7% 7% 7% 796 7% 8% 996 0 O 21,500 0 8,000 4,650 0 0 Outstanding Balance
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:2. Calculate the amount of interest and principal paid in each month based on the history of borrowing
and payments on the line of credit. Using that information, find the outstanding balance as of that date.
Assume that interest accrues over the course of the month. So, for example, any outstanding balance on
January 1 has accrued one month of interest on February 1.
Date
$ Borrowed
$ Repaid
January 1
February 1
March 1
April 1
May 1
June 1
July 1
August 1
September 1
October 1
November 1
December 1
12,500
11,450
14,675
0
11,980
0
0
7,290
0
0
0
0
Interest
Rate
8%
8%
7%
7%
7%
7%
7%
8%
9%
9%
10%
9%
0
0
0
21,500
0
8,000
4,650
0
0
0
20,000
6,350
Interest Paid Principal Paid
Outstanding
Balance
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