Amarjeet graduated from the University of Calgary on May 2 and has student loans totalling $36,000.00. The prime rate upon graduation was 3.75%. He has decided to pay in full the interest charged during the grace period (i.e., he is not converting it to principal) before starti monthly payments of $700.00 at the fixed interest rate. Complete the table below, including calculations for the grace period and the first three months of his repayment schedule. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".)
Amarjeet graduated from the University of Calgary on May 2 and has student loans totalling $36,000.00. The prime rate upon graduation was 3.75%. He has decided to pay in full the interest charged during the grace period (i.e., he is not converting it to principal) before starti monthly payments of $700.00 at the fixed interest rate. Complete the table below, including calculations for the grace period and the first three months of his repayment schedule. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".)
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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Question
Transcribed Image Text:Loans
Richard S Flores
Amarjeet graduated from the University of Calgary on May 2 and has student loans totalling
$36,000.00. The prime rate upon graduation was 3.75%. He has decided to pay in full the
interest charged during the grace period (i.e., he is not converting it to principal) before starting
monthly payments of $700.00 at the fixed interest rate. Complete the table below, including
calculations for the grace period and the first three months of his repayment schedule.
(Round all monetary values to the nearest penny.)
(Use a minus sign before the dollar sign to denote a negative monetary value. For example,
"-$149.63".)
(Give all "Number of Days" quantities as fractions with denominator 365.)
Date
Balance Annual
before Interest
Transaction Rate
Number Interest Accrued
of Days Charged Interest
Payment
(+) or
Advance
(-)
Principal
Amount
June 1
Nov 30
6.25%
(inclusive)
Dec 31
8.75%
Jan 31
8.75%
Feb 29
8.75%
Note: You can earn partial credit on this problem
Balance after
Transaction
$36,000.00
$0.00
$700.00
$700.00
$700.00
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