On July 15, when the prime rate was set at 4.25%, Canadian Footwear took out an operating loan from CIBC for $9,000.00 at prime plus 1.75%. The terms of the loan require a fixed payment of $1,690.00 on the 15th of every month until the loan is repaid. The prime rate climbed by 0.25% on September 21. Complete the repayment schedule below by filling in the appropriate interest rates. Date Jul 15 Aug 15 Sep 15 Sep 21 Oct 15 Nov 15 WEB Dec 15 Jan 15 Balance before Transaction $9,000.00 $7,355.86 $5,703.34 $5,703,34 $4,042.41 $2,373.87 $696.06 Annual Interest Rate * * * * * * * % 31/365 31/365 % 6/365 19% Number Interest Accrued of Days Charged Interest % % 24/365 % Payment (+) or Advance (-) $45.86 $45.86 $1,690.00 $1,644,14 $37.48 $37.48 $1,690.00 $1,652.52 $5.63 $5.63 $0.00 $0.00 $29.07 $1,690.00 $1,660.93 $23.44 31/365 $21.46 $21.46 $1,690.00 $1,668.54 30/365 $12.19 $12.19 $1,690.00 $1,677.81 $3.69 31/365 $3.69 $699.75 $696.06 Principal Amount Balance after Transaction $9,000.00 $7,355.86 $5,703.34 $5,703.34 $4,042.41 $2,373.87 $696.06 $0.00

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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On July 15, when the prime rate was set at 4.25%, Canadian Footwear took out an operating loan from CIBC for $9,000.00
at prime plus 1.75%. The terms of the loan require a fixed payment of $1,690.00 on the 15th of every month until the loan is
repaid. The prime rate climbed by 0.25% on September 21.
Complete the repayment schedule below by filling in the appropriate interest rates.
Date
Jul 15
Aug 15
Sep 15
Sep 21
Oct 15
Nov 15
Dec 15
Jan 15
Balance
before
Transaction
$9,000.00
$7,355.86
$5,703.34
$5,703,34
$4,042.41
$2,373.87
$696.06
Annual
Interest
Rate
* * * * *
$45.86
$37.48
$5.63
24/365 $23.44
31/365 $21.46
% 30/365 $12,19
31/365
%
%
%
%
%
Number Interest Accrued
of Days Charged Interest
%
31/365
31/365
6/365
Payment
(+) or Principal
Advance Amount
(-)
$45.86
$1,690.00 $1,644,14
$37.48 $1,690.00 $1.652.52
$5.63
$0.00
$0.00
$1,690.00 $1,660.93
$29.07
$21.46 $1,690.00 $1,668.54
$1,690.00 $1,677.81
$699.75 $696.06
$12.19
$3.69 $3,69
Balance after
Transaction
$9,000.00
$7,355.86
$5,703.34
$5,703.34
$4,042.41
$2,373.87
$696.06
$0.00
Transcribed Image Text:On July 15, when the prime rate was set at 4.25%, Canadian Footwear took out an operating loan from CIBC for $9,000.00 at prime plus 1.75%. The terms of the loan require a fixed payment of $1,690.00 on the 15th of every month until the loan is repaid. The prime rate climbed by 0.25% on September 21. Complete the repayment schedule below by filling in the appropriate interest rates. Date Jul 15 Aug 15 Sep 15 Sep 21 Oct 15 Nov 15 Dec 15 Jan 15 Balance before Transaction $9,000.00 $7,355.86 $5,703.34 $5,703,34 $4,042.41 $2,373.87 $696.06 Annual Interest Rate * * * * * $45.86 $37.48 $5.63 24/365 $23.44 31/365 $21.46 % 30/365 $12,19 31/365 % % % % % Number Interest Accrued of Days Charged Interest % 31/365 31/365 6/365 Payment (+) or Principal Advance Amount (-) $45.86 $1,690.00 $1,644,14 $37.48 $1,690.00 $1.652.52 $5.63 $0.00 $0.00 $1,690.00 $1,660.93 $29.07 $21.46 $1,690.00 $1,668.54 $1,690.00 $1,677.81 $699.75 $696.06 $12.19 $3.69 $3,69 Balance after Transaction $9,000.00 $7,355.86 $5,703.34 $5,703.34 $4,042.41 $2,373.87 $696.06 $0.00
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