$9,000.00 and $12,000.00 on April 6 and June 21. The interest rate on her HELOC sits at prime plus 1.75%. On March 1, the prime April 19, it rose by 0.5%. Complete the repayment schedule below by filling in the appropriate numbers of days. (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Mar 1 $16,000.00 Mar 23 $16,000.00 5.5% $53.04 $53.04 -$7,000.00 -$7,000.00 $23,000.00 Apr 1 $23,000.00 5.5% $31.19 $84.23 Apr 6 $23,000.00 5.5% $17.33 Apr 19 $14,000.00 5.5% $27.42 $84.23 $17.33 $9,000.00 $44.75 $0.00 $0.00 $23,000.00 $9,000.00 $14,000.00 $0.00 $14.000.00
$9,000.00 and $12,000.00 on April 6 and June 21. The interest rate on her HELOC sits at prime plus 1.75%. On March 1, the prime April 19, it rose by 0.5%. Complete the repayment schedule below by filling in the appropriate numbers of days. (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Mar 1 $16,000.00 Mar 23 $16,000.00 5.5% $53.04 $53.04 -$7,000.00 -$7,000.00 $23,000.00 Apr 1 $23,000.00 5.5% $31.19 $84.23 Apr 6 $23,000.00 5.5% $17.33 Apr 19 $14,000.00 5.5% $27.42 $84.23 $17.33 $9,000.00 $44.75 $0.00 $0.00 $23,000.00 $9,000.00 $14,000.00 $0.00 $14.000.00
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:Lynne has access to a HELOC that requires only the payment of accrued interest on the first of every month. On March 1, the opening balance on her
HELOC was $16,000.00. She took advances of $7,000.00 and $13,000.00 on March 23 and May 9, respectively. She made additional payments of
$9,000.00 and $12,000.00 on April 6 and June 21. The interest rate on her HELOC sits at prime plus 1.75%. On March 1, the prime rate was 3.75%. On
April 19, it rose by 0.5%.
Complete the repayment schedule below by filling in the appropriate numbers of days.
(Give all "Number of Days" quantities as fractions with denominator 365.)
Date
Balance
before
Transaction
Annual
Interest
Rate
Number Interest Accrued
of Days Charged Interest
Payment
(+) or
Advance
Principal
Balance after
Amount
Transaction
(-)
Mar 1
$16,000.00
Mar 23 $16,000.00 5.5%
$53.04
Apr 1
Apr 6
Apr 19
$23,000.00
5.5%
$31.19
$23,000.00
5.5%
$14,000.00 5.5%
$17.33
$53.04
$84.23
$17.33
May 1 $14,000.00
May 9
6%
$14,000.00
6%
$27.42 $44.75
$27.62 $72.37
$18.41 $18.41
$0.00
$0.00
-$7,000.00 -$7,000.00 $23,000.00
$84.23
$0.00
$23,000.00
$9,000.00 $9,000.00 $14,000.00
$0.00
$72.37
$14,000.00
$14,000.00
-$13,000.00-$13,000.00
$27,000.00
Jun 1 $27,000.00
6%
$102.08 $120.49
$120.49
$0.00
$27,000.00
Jun 21
$27,000.00
6%
Jul 1
$15,000.00
6%
$88.77 $88.77
$24.66 $113.43
$12,000.00 $12,000.00
$113.43
$15,000.00
$0.00
$15,000.00
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