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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 $6,000.00 and $14,000.00 on March 17 and May 9, respectively. She made additional payments of $8,000.00 and $11,000.00 on April 8 and June 25. The interest rate on her HELOC sits at prime plus 1.25%. On March 1, the prime rate was 3.75%. 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.) Date Mar 1 Mar 17 Apr 1 Apr 8 Apr 23 May 1 May 9 Jun 1 Jun 25 Jul 1 Balance Annual before Interest Transaction Rate $19,000.00 $25,000.00 $25,000.00 $17,000.00 $17,000.00 $17,000.00 5.25% $31,000.00 5.25% $31,000.00 5.25% $20,000.00 5.25% 5% 5% 5% 5% 5.25% Number Interest Accrued of Days Charged Interest r Payment (+) or Advance (-) Principal Amount $41.64 $41.64 -$6,000.00 -$6,000.00 $51.37 $93.01 $93.01 $0.00 $23.97 $23.97 $8,000.00 $8,000.00 $34.93 $58.90 $0.00 $0.00 $78.46 $0.00 $19.56 $78.46 $19.56 $19.56 -$14,000.00 -$14,000.00 $102.55 $122.11 $122.11 $0.00 $107.01 $107.01 $11,000.00 $11,000.00 $17.26 $124.27 $124.27 $0.00 *Please explain how you found those days clearly and simple. Balance after Transaction $19,000.00 $25,000.00 $25,000.00 $17,000.00 $17,000.00 $17,000.00 $31,000.00 $31,000.00 $20,000.00 $20,000.00
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