Lacy has a $41,500.00 student loan when she graduates on May 4, and the prime rate is set at 5.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $900.00. She opts for the variable rate on her student loan, Create the first four repayments of her repayment schedule. Calculate the total interest charged for both the grace period and the four payments combined. Assume February does not involve a leap year. (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 June 1 Nov 30 (inclusive) Dec 31 Jan 31 Feb 28 Mar 31 Balance before Transaction 0 Annual Interest Rate 8% 8% 8% 89% 8% Number Interest Accrued of Days Charged Interest U Total combined interest charged for grace period and first four months: Payment (+) or Principal Balance after Advance Amount Transaction (-) 0 $41,500.00
Lacy has a $41,500.00 student loan when she graduates on May 4, and the prime rate is set at 5.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $900.00. She opts for the variable rate on her student loan, Create the first four repayments of her repayment schedule. Calculate the total interest charged for both the grace period and the four payments combined. Assume February does not involve a leap year. (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 June 1 Nov 30 (inclusive) Dec 31 Jan 31 Feb 28 Mar 31 Balance before Transaction 0 Annual Interest Rate 8% 8% 8% 89% 8% Number Interest Accrued of Days Charged Interest U Total combined interest charged for grace period and first four months: Payment (+) or Principal Balance after Advance Amount Transaction (-) 0 $41,500.00
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 27M
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Transcribed Image Text:ns
Lacy has a $41,500.00 student loan when she graduates on May 4, and the prime rate is set at 5.5%. She has decided at the
end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $900.00. She opts for
the variable rate on her student loan. Create the first four repayments of her repayment schedule. Calculate the total interest
charged for both the grace period and the four payments combined. Assume February does not involve a leap year.
(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
June 11
Nov 30
(inclusive)
Dec 31
Jan 31
Feb 28
Mar 31
Balance
before
Transaction
Annual
Interest
Rate
8%
8%
8%
8%
8%
Number Interest Accrued
of Days Charged Interest
U
D
n
Total combined interest charged for grace period and first four months:
Payment
(+) or Principal Balance after
Advance Amount Transaction
(-)
10
$41,500.00
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