Stefan finished his college program on June 3 with Canada Student Loans totalling $12,490. He decided to capitalize the interest that accrued (at prime plus 2.5%) during the grace period. Upon consolidation, he chose the floating rate option of prime + 2.5%. Stefan's first end-of-month payment of $275 was made on January 31. The prime rate on June 3 was 3.75%, increased to 3.85% effective August 8, and increased again to 4.05% effective January 5. Calculate the balance owed on the loan after the January 31 payment. (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stefan's loan balance LA
Stefan finished his college program on June 3 with Canada Student Loans totalling $12,490. He decided to capitalize the interest that accrued (at prime plus 2.5%) during the grace period. Upon consolidation, he chose the floating rate option of prime + 2.5%. Stefan's first end-of-month payment of $275 was made on January 31. The prime rate on June 3 was 3.75%, increased to 3.85% effective August 8, and increased again to 4.05% effective January 5. Calculate the balance owed on the loan after the January 31 payment. (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stefan's loan balance LA
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:Stefan finished his college program on June 3 with Canada Student Loans
totalling $12,490. He decided to capitalize the interest that accrued (at prime
plus 2.5%) during the grace period. Upon consolidation, he chose the floating
rate option of prime + 2.5%. Stefan's first end-of-month payment of $275 was
made on January 31. The prime rate on June 3 was 3.75%, increased to 3.85%
effective August 8, and increased again to 4.05% effective January 5. Calculate
the balance owed on the loan after the January 31 payment. (Use 365 days a
year. Do not round intermediate calculations. Round your final answer to 2
decimal places.)
Stefan's loan balance
LA
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