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Lynne has access to a HELOC that requires only the payment of accrued interest on the first of every month. On March 1, the
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 $19,000.00. She took advances of $9,000.00 and $10,000.00 on March 20 and May 7, respectively. She made additional payments of $7,000.00 and $12.000.00 on April 12 and June 13. The interest rate on her HELOC sits at prime plus 1%. On March 1, the prime rate was 4.75%. On April 23, it rose by 0.25%. Complete the repayment schedule below by filling in the appropriate numbers of days. (Give all "Number of Days" quantities as fractions with denominator 365.) Balance Annual Date B before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance (-) Principal Amount Balance after Transaction Mar 1 $19,000.00 10 Mar 201 $19,000.00 5.75% $56.87 $56.87 -$9,000.00 -$9,000.00 $28,000.00 Apt 1 $28,000.00 5.75% $52.93 $109.80 $109.80 $0.00 $28,000.00 Apr 12 $28,000.00 5.75% $48.52 $48.52 $7,000.00 $7,000.00 $21,000.00 Apr 23 $21,000.00 5.75% $36.39 $84.91 May 1 $21,000.00 6% $27.62 $112.53 $0.00 $112.53 $0.00 $21,000.00 $0.00 $21,000.00 May 7 $21,000.00 6% $20.71 Jun 1 Jun 13 $31,000.00 6% $127.40 $20.71 $148.11 -$10,000.00 $10,000.00 $31,000.00 $31,000.00 6% $61.15 Jul 1 $19,000.00 6% $56.22 $61.15 $117.37 $148.11 $12,000.00 $117.37 $0.00 $31,000.00 $12,000.00 $0.00 $19,000.00 $19,000.00
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