Lacy has a $43,000.00 student loan when she graduates on May 4, and the prime rate...
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Lacy has a $43,000.00 student loan when she graduates on May 4, and the prime rate is set at 5.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $1,000.00. She opts for the variable rate on her student loan. Create the first four repayments of her repayment schedule. Calculate the total interest charged for both the grace period and the four payments combined. Assume February does not involve a leap year. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date June 1 Nov 30 (inclusive) Dec 31 Jan 31 Feb 28 Mar 31 Balance before Transaction Annual Interest Rate 8% 8% 8% 8% 8% Payment (+) or Principal Charged Interest Advance Amount (-) Number Interest Accrued of Days Charged Total combined interest charged for grace period and first four months: Balance after Transaction $43,000.00 Lacy has a $43,000.00 student loan when she graduates on May 4, and the prime rate is set at 5.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $1,000.00. She opts for the variable rate on her student loan. Create the first four repayments of her repayment schedule. Calculate the total interest charged for both the grace period and the four payments combined. Assume February does not involve a leap year. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63".) (Give all "Number of Days" quantities as fractions with denominator 365.) Date June 1 Nov 30 (inclusive) Dec 31 Jan 31 Feb 28 Mar 31 Balance before Transaction Annual Interest Rate 8% 8% 8% 8% 8% Payment (+) or Principal Charged Interest Advance Amount (-) Number Interest Accrued of Days Charged Total combined interest charged for grace period and first four months: Balance after Transaction $43,000.00
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Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
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