Lacy has a $49,500.00 student loan when she graduates on May 4, and the prime rate is set at 4.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $950.00. 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 Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) June 1 $49,500.00 ப Nov 30 7% ☐ ☐ ☐ (inclusive) Dec 31 7% Jan 31 7% Feb 28 7% Mar 31 7% Total combined interest charged for grace period and first four months' |
Lacy has a $49,500.00 student loan when she graduates on May 4, and the prime rate is set at 4.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $950.00. 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 Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) June 1 $49,500.00 ப Nov 30 7% ☐ ☐ ☐ (inclusive) Dec 31 7% Jan 31 7% Feb 28 7% Mar 31 7% Total combined interest charged for grace period and first four months' |
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:Lacy has a $49,500.00 student loan when she graduates on May 4, and the prime rate is set at 4.5%. She has decided at the
end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $950.00. 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
Balance Annual
before
Interest
Transaction Rate
Number Interest Accrued
of Days Charged Interest
Payment
(+) or
Advance
(-)
Principal
Amount
Balance after
Transaction
June 1
$49,500.00
Nov 30
7%
(inclusive)
☐
☐
Dec 31
7%
Jan 31
7%
Feb 28
7%
Mar 31
7%
Total combined interest charged for grace period and first four months: I
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