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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
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 4.25%. 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 $2,800.00. She took advances of $3,700.00,$3,100.00, and $4,200.00 on October 22 , November 17 , and December 1 , respectively. She made payments of $4,500.00, $3,000.00, and $3,500.00 on November 1 , November 25 , and December 20 , respectively. The prime rate decreased by 0.5% on November 8 . Complete the repayment schedule below by filling in the interest charges for October. November. and December
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