Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Everlyne has a personal LOC with her bank with a maximum credit limit of $9,000.00. The interest rate is prime plus 1.25%, and the
Everlyne has a personal LOC with her bank with a maximum credit limit of $9,000.00. The interest rate is prime plus 1.25%, 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 24% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,700.00. She took advances of $3,900.00, $3,400.00, and $3,700.00 on October 17, November 17, and December 1, respectively. She made payments of $4,700.00, $3,300.00, and $3,000.00 on November 1, November 21, and December 15, respectively. The prime rate decreased by 0.25% on November 7. Complete the repayment schedule below by filling in the interest charges for October, November, and December. Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Balance after Amount Transaction (-) Oct 1 $2,700.00 Oct 17 $2,700.00 5.75% 16/365 -$3,900.00 $3,900.00 $6,600.00 Nov 1 $6,600.00 Nov 7 Nov 17 Nov 21 5.75% 15/365 $1,591.29 5.75% 6/365 $1,591.29 5.5% $5,031.12 $5,008.71 $1,591.29 10/365 $0.00 $0.00 -$3,400.00 $3,400.00 $1,591.29 $4,991.29 $4.991.29 5.5% 4/365 $3,300.00 $3,300.00 $1,691.29 Dec 1 $1,691.29 5.5% 10/365 -$3,600.00 $3,609.46 $5,300.75 Dec 15 $5,300.75 5.5% 14/365 $3,000.00 $3,000.00 $2,300.75 Jan 1 $2,300.75 5.5% 17/365 $115.89 $98.82 $2,201.93
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started