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
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
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education