Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00. Payments of $2000.00 and $2500.00 were made after four months and six months respectively. At the end of one year, Sheridan Service borrowed an ad ional $3500.00. Five months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 9% compounded monthly? The amount of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00. Payments of $2000.00 and $2500.00 were made after four months and six months respectively. At the end of one year, Sheridan Service borrowed an ad ional $3500.00. Five months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage loan if the line of credit interest was 9% compounded monthly? The amount of the loan is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Sheridan Service has a line of credit loan with the bank. The initial loan balance was $6000.00. Payments of $2000.00 and $2500.00 were made after four months and six months respectively. At the
end of one year, Sheridan Service borrowed an ad ional $3500.00. Five months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage
loan if the line of credit interest was 9% compounded monthly?
The amount of the loan is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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Step 1: Given Data
VIEWStep 2: Step 1; Calculate the loan amount at the end of 4 months
VIEWStep 3: Step 2; Calculate the loan balance after the payment of $2,000
VIEWStep 4: Step 3 - Calculate the loan balance at the end of 9 months
VIEWStep 5: Step 4 - Calculate the balance after payment of $2,500
VIEWStep 6: Step 5 - Calculate the loan at the end of 12 months (1 year)
VIEWStep 7: Step 6 - Add the additional borrowing
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