Lynne has access to a HELOC that requires only the payment of accrued interest on the...

Transcribed Image Text:

Lynne has access to a HELOC that requires only the payment of accrued interest on the first of every month. On March 1, the opening balance on her HELOC was $15,000.00. She took advances of $8,000.00 and $12,000.00 on March 17 and May 4, respectively. She made additional payments of $9,000.00 and $13,000.00 on April 12 and June 10. The interest rate on her HELOC sits at prime plus 1.5%. On March 1, the prime rate was 3.5%. On April 20, it rose by 0.75%. Complete the repayment schedule below by filling in the appropriate numbers of days. (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number of Days Interest Accrued Charged Interest Payment (+) or Principal Balance after Advance Amount Transaction (-) Mar 1 $15,000.00 Mar 17 $15,000.00 5% $32.88 Apr 1 $23,000.00 5% $32.88 $47.26 $80.14 -$8,000.00 -$8,000.00 $23,000.00 $80.14 $0.00 $23,000.00 Apr 12 $23,000.00 5% $34.66 $34.66 $9,000.00 $9,000.00 $14,000.00 Apr 20 $14,000.00 5% $15.34 $50.00 $0.00 $0.00 $14,000.00 May 1 $14,000.00 5.75% $24.26 $74.26 $74.26 $0.00 $14,000.00 May 4 $14,000.00 5.75% $6.62 $6.62 -$12,000.00-$12,000.00 $26,000.00 Jun 1 $26,000.00 5.75% $114.68 $121.30 $121.30 $0.00 $26,000.00 Jun 10 Jul 1 $26,000.00 5.75% $13,000.00 $36.86 5.75% $43.01 $36.86 $79.87 $13,000.00 $13,000.00 $13,000.00 $79.87 $0.00 $13,000.00 Lynne has access to a HELOC that requires only the payment of accrued interest on the first of every month. On March 1, the opening balance on her HELOC was $15,000.00. She took advances of $8,000.00 and $12,000.00 on March 17 and May 4, respectively. She made additional payments of $9,000.00 and $13,000.00 on April 12 and June 10. The interest rate on her HELOC sits at prime plus 1.5%. On March 1, the prime rate was 3.5%. On April 20, it rose by 0.75%. Complete the repayment schedule below by filling in the appropriate numbers of days. (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance Annual before Interest Transaction Rate Number of Days Interest Accrued Charged Interest Payment (+) or Principal Balance after Advance Amount Transaction (-) Mar 1 $15,000.00 Mar 17 $15,000.00 5% $32.88 Apr 1 $23,000.00 5% $32.88 $47.26 $80.14 -$8,000.00 -$8,000.00 $23,000.00 $80.14 $0.00 $23,000.00 Apr 12 $23,000.00 5% $34.66 $34.66 $9,000.00 $9,000.00 $14,000.00 Apr 20 $14,000.00 5% $15.34 $50.00 $0.00 $0.00 $14,000.00 May 1 $14,000.00 5.75% $24.26 $74.26 $74.26 $0.00 $14,000.00 May 4 $14,000.00 5.75% $6.62 $6.62 -$12,000.00-$12,000.00 $26,000.00 Jun 1 $26,000.00 5.75% $114.68 $121.30 $121.30 $0.00 $26,000.00 Jun 10 Jul 1 $26,000.00 5.75% $13,000.00 $36.86 5.75% $43.01 $36.86 $79.87 $13,000.00 $13,000.00 $13,000.00 $79.87 $0.00 $13,000.00