Everlyne has a personal LOC with her bank with a maximum credit limit of $9,000.00 The...

  

Transcribed Image Text:

Everlyne has a personal LOC with her bank with a maximum credit limit of $9,000.00 The interest rate is prime plus 1.25%, 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 23% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,700.00. She took advances of $3,700.00 $3,500.00, and $3,800.00 on October 19, November 18, and December 1, respectively. She made payments of $3,100.00, $4,100.00, and $3,800.00 on November 1, November 24, and December 20, respectively. The prime rate decreased by 0.25% on November 7. Complete the repayment schedule below by filling in the interest charges for October, November, and December Date Oct 1 Oct 19 Nov 1 Nov 7 Nov 18 Nov 24 Balance before Transaction Annual Interest Rate $2.700.00 5.75% 18/365 $6,400.00 5.75% 13/365 $2,999.73 5.75% 6/365 $2.999 73 $6,499.73 5.5% Number Interest Accrued of Days Charged Interest 5.5% 11/365 6/365 2 Payment (+) or Principal Balance after Advance Amount Transaction (-) -$3,700.00 $3,700.00 $3,421 04 $3,400 27 $0.00 $0 00 $3.500.00 $3,500.00 $4,100.00 $4.100.00 $2.700.00 $6,400 00 $2,999 73 $2.999.73 $6.499.73 $2,399.73 Everlyne has a personal LOC with her bank with a maximum credit limit of $9,000.00 The interest rate is prime plus 1.25%, 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 23% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,700.00. She took advances of $3,700.00 $3,500.00, and $3,800.00 on October 19, November 18, and December 1, respectively. She made payments of $3,100.00, $4,100.00, and $3,800.00 on November 1, November 24, and December 20, respectively. The prime rate decreased by 0.25% on November 7. Complete the repayment schedule below by filling in the interest charges for October, November, and December Date Oct 1 Oct 19 Nov 1 Nov 7 Nov 18 Nov 24 Balance before Transaction Annual Interest Rate $2.700.00 5.75% 18/365 $6,400.00 5.75% 13/365 $2,999.73 5.75% 6/365 $2.999 73 $6,499.73 5.5% Number Interest Accrued of Days Charged Interest 5.5% 11/365 6/365 2 Payment (+) or Principal Balance after Advance Amount Transaction (-) -$3,700.00 $3,700.00 $3,421 04 $3,400 27 $0.00 $0 00 $3.500.00 $3,500.00 $4,100.00 $4.100.00 $2.700.00 $6,400 00 $2,999 73 $2.999.73 $6.499.73 $2,399.73

Answer rating: 100% (QA)

Alright lets go through the repayment schedule filling in the interest charges for October November and December We need to calculate the interest charged for each period between transactions and paym... View the full answer