Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime + 3%. Her current balance owing on November 1 is $13,250.00 and she is required to make interest-only payments on the first of every month. The prime rate is set at 4%. She makes one payment of $2,000.00 on January 19. Create three months of her 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 before Transaction Annual Number Interest Accrued Interest of Days Charged Interest Payment Principal Balance after (+) or Amount Transaction Rate Advance (-) Nov 1 $13,250.00 Dec 1 $13250.00 7% 30 $76.23 $76.23 $76.23 $13,250.00 365 Jan 1 $13250.00 7% 31 $78.77 $78.77 $78.77 $13,250.00 365 Jan 19 $13250.00 7% 18 $45.74 $45.74 $2,000.00 $11,250.00 365 Feb 1 $11250.00 7% 13 $28.05 $11,250.00 365
Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime + 3%. Her current balance owing on November 1 is $13,250.00 and she is required to make interest-only payments on the first of every month. The prime rate is set at 4%. She makes one payment of $2,000.00 on January 19. Create three months of her 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 before Transaction Annual Number Interest Accrued Interest of Days Charged Interest Payment Principal Balance after (+) or Amount Transaction Rate Advance (-) Nov 1 $13,250.00 Dec 1 $13250.00 7% 30 $76.23 $76.23 $76.23 $13,250.00 365 Jan 1 $13250.00 7% 31 $78.77 $78.77 $78.77 $13,250.00 365 Jan 19 $13250.00 7% 18 $45.74 $45.74 $2,000.00 $11,250.00 365 Feb 1 $11250.00 7% 13 $28.05 $11,250.00 365
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Please correct answer and don't use hand raiting
Transcribed Image Text:Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime + 3%. Her current balance owing on November 1 is $13,250.00 and
she is required to make interest-only payments on the first of every month. The prime rate is set at 4%. She makes one payment of $2,000.00 on
January 19. Create three months of her 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
before
Transaction
Annual Number Interest Accrued
Interest of Days Charged Interest
Payment
Principal Balance after
(+) or
Amount
Transaction
Rate
Advance
(-)
Nov 1
$13,250.00
Dec 1
$13250.00
7%
30
$76.23
$76.23
$76.23
$13,250.00
365
Jan 1
$13250.00
7%
31
$78.77
$78.77
$78.77
$13,250.00
365
Jan 19
$13250.00
7%
18
$45.74
$45.74
$2,000.00
$11,250.00
365
Feb 1
$11250.00
7%
13
$28.05
$11,250.00
365
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