Donia borrowed $7000 from her credit union on a demand loan on July 20 to purchase a motorcycle. The terms of the loan require fixed monthly payments of $1400 on the first day of each month, beginning September 1. The floating rate on the loan is prime plus 3%. The prime rate started at 5.75%, but rose 0.5% on August 19, and another 0.25% effective November 2. Prepare a loan repayment schedule presenting the amount of each payment and the allocation of each payment to interest and principal. (Round your answers to the nearest cent.) Date 20-Jul 19-Aug 1-Sep 1-Oct 1-Nov 2-Nov 1-Dec 1-Jan 1-Feb Number of days 30 13 30 31 1 29 31 31 Interest rate (%) -- 8.75 9.25 9.25 9.25 9.25 9.50 9.50 9.50 Interest ($) 50.34 Accrued Interest ($) 50.34 Payment (Advance) ($) Principal Portion ($) Balance ($) 7,000.00 7,000.00

Donia borrowed $7000 from her credit union on a demand loan on July 20 to purchase a motorcycle. The terms of the loan require fixed monthly payments of $1400 on the first day of each month, beginning September 1. The floating rate on the loan is prime plus 3%. The prime rate started at 5.75%, but rose 0.5% on August 19, and another 0.25% effective November 2. Prepare a loan repayment schedule presenting the amount of each payment and the allocation of each payment to interest and principal. (Round your answers to the nearest cent.) Date 20-Jul 19-Aug 1-Sep 1-Oct 1-Nov 2-Nov 1-Dec 1-Jan 1-Feb Number of days 30 13 30 31 1 29 31 31 Interest rate (%) -- 8.75 9.25 9.25 9.25 9.25 9.50 9.50 9.50 Interest ($) 50.34 Accrued Interest ($) 50.34 Payment (Advance) ($) Principal Portion ($) Balance ($) 7,000.00 7,000.00

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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