Question
You have a 15,000 line of credit and your bank requires you to pay 0.5% of the principal outstanding at the end of every month,
You have a 15,000 line of credit and your bank requires you to pay 0.5% of the principal outstanding at the end of every month, as well as charging an interest at a rate of 9% per year, compounded monthly.You draw down $1,500 on the line on March 1st.What will be the balance of your loan on June 1st?
What formula is used to calculate this?
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International Finance Theory and Policy
Authors: Paul R. Krugman, Maurice Obstfeld, Marc J. Melitz
10th edition
978-0133425895, 133425894, 978-0133423631, 133423638, 978-0133423648
