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3and4 Everlyne has a personal LOC with her bank with a maximum credit limit of $11,000.00. The interest rate is prime plus 1.75%, and the
3and4
Everlyne has a personal LOC with her bank with a maximum credit limit of $11,000.00. The interest rate is prime plus 1.75%, and the current prime rate is 4.5%. Regardless of any account transaction activity, her bank requires on the first of every month for her to pay "the greater of 5% of the current balance or $100 " from her checking account. She is allowed to exceed her maximum credit limit, but if she does the entire balance is subject to 23% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,100.00. She took advances of $4,100.00,$4,000.00, and $4,900. 00 on October 18, November 14, and December 1 , respectively. She made payments of $3,500.00,$4,600.00, and $4,900.00 on November 1, November 21, and December 20, respectively. The prime rate decreased by 0.75% on November 5 . Complete the repayment schedule below by filling in the interest charges for October, November, and December. Scotiabank approved a $240,000.00 line of credit for Buhler Industries at prime +1%. It requires only the repayment of accrued interest on the 28th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 5 for $170,000.00 and made a payment of $130,000.00 on January 14. The prime rate was 5% initially and increased to 6.25% on January 5. Complete the repayment schedule below by filling in the payment and principal amounts Step by Step Solution
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