Answered step by step
Verified Expert Solution
Link Copied!

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 current

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Futures And Other Derivatives

Authors: John C. Hull

7th Edition

0136015867, 9780136015864

More Books

Students also viewed these Finance questions