Homework Help is Here – Start Your Trial Now!
Business
Finance
Complete the repayment schedule below by filling in the interest charges for October, November, and December

Complete the repayment schedule below by filling in the interest charges for October, November, and December

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Topic Video
Question
Everlyne has a personal LOC with her bank with a maximum credit limit of $11,000.00. The interest rate is prime plus 1.25%, and the current prime rate is 3.5%. Regardless of any account transaction activity, her bank requires on the first of every month for her to pay "the greater of 5% of the current balance or $100" from her checking account. She is allowed to exceed her maximum credit limit, but if she does the entire balance is subject to 22% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,300.00 She took advances of $4,900.00, $4,400.00, and $3,700.00 on October 17, November 16, and December 1, respectively. She made payments of $4,200.00, $4,900.00, and $3,900.00 on November 1, November 21, and December 18, respectively. The prime rate decreased by 0.5% on November 9. Complete the repayment schedule below by filling in the interest charges for October, November, and December Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Principal Amount Balance after Transaction Oct 1 Oct 17 Nov 1 Nov 9 Nov 16 $2,300.00 $2,300.00 4.75% 16/365 $4,900.00 $4,900.00 $7,200.00 Nov 21 $7,200.00 4.75% 15/365 $2,657.90 4.75% 8/365 $2,657.90 4.25% 7/365 $7,057.90 4.25% $4,560.94 $4,542.10 $2,657.90 $0.00 $0.00 $2,657.90 -$4,400.00 $4,400.00 $7,057.90 5/365 $4,900.00 $4,900.00 $2,157.90 Dec 1 Dec 18 $2,157.90 4.25% 10/365 $3,591.53 $3,603.09 $5,760.99 Jan 1 $5,760.99 4.25% 17/365 4.25% 14/365 $1,860.99 $3,900.00 $3,900.00 $1,860.99 $100.00 $85.57 $1,775.42
Transcribed Image Text:Everlyne has a personal LOC with her bank with a maximum credit limit of $11,000.00. The interest rate is prime plus 1.25%, and the current prime rate is 3.5%. Regardless of any account transaction activity, her bank requires on the first of every month for her to pay "the greater of 5% of the current balance or $100" from her checking account. She is allowed to exceed her maximum credit limit, but if she does the entire balance is subject to 22% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,300.00 She took advances of $4,900.00, $4,400.00, and $3,700.00 on October 17, November 16, and December 1, respectively. She made payments of $4,200.00, $4,900.00, and $3,900.00 on November 1, November 21, and December 18, respectively. The prime rate decreased by 0.5% on November 9. Complete the repayment schedule below by filling in the interest charges for October, November, and December Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Principal Amount Balance after Transaction Oct 1 Oct 17 Nov 1 Nov 9 Nov 16 $2,300.00 $2,300.00 4.75% 16/365 $4,900.00 $4,900.00 $7,200.00 Nov 21 $7,200.00 4.75% 15/365 $2,657.90 4.75% 8/365 $2,657.90 4.25% 7/365 $7,057.90 4.25% $4,560.94 $4,542.10 $2,657.90 $0.00 $0.00 $2,657.90 -$4,400.00 $4,400.00 $7,057.90 5/365 $4,900.00 $4,900.00 $2,157.90 Dec 1 Dec 18 $2,157.90 4.25% 10/365 $3,591.53 $3,603.09 $5,760.99 Jan 1 $5,760.99 4.25% 17/365 4.25% 14/365 $1,860.99 $3,900.00 $3,900.00 $1,860.99 $100.00 $85.57 $1,775.42
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS