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Everlyne has a personal LOC with her bank with a maximum credit limit of $10,000.00. The interest rate is prime plus 2%, and the
Everlyne has a personal LOC with her bank with a maximum credit limit of $10,000.00. The interest rate is prime plus 2%, 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 $3,000.00. She took advances of $3,400.00, $3,800.00, and $4,800.00 on October 18, November 18, and December 1, respectively. She made payments of $3,000.00, $4,600.00, and $4,400.00 on November 1, November 24, and December 14, respectively. The prime rate decreased by 0.5% 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 of Days Charged Accrued Interest Payment (+) or Advance Principal Amount Balance after Transaction. (-) Oct 1 $3,000.00 Oct 18 $3,000.00 6.5% 17/365 -$3,400.00 $3,400.00 $6,400.00 Nov 1 $6,400.00 6.5% 14/365 Nov 7 $3,103.79 6.5% 6/365 $3,321.25 $3.296.21 $0.00 $3,103.79 Nov 18 $3,103.79 6% 11/365 $0.00 -$3,800.00 $3,800.00 $3,103.79 $6,903.79 Nov 24 $6,903.79 6% 6/365 $4,600.00 $4,600.00 $2,303.79 Dec 1 Dec 14 $2,303.79 6% 7/365 -$4,683.89 -$4,702.28 $7,006.07 $7,006.07 6% 13/365 Jan 1 $2,606.07 6% 18/365 $131.44 $4,400.00 $4,400.00 $108.76 $2,606.07 $2,497.31
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