Question: A $5000 demand loan was advanced on June 3. Fixed monthly payments of $1000 were required on the first day of each month beginning July

A $5000 demand loan was advanced on June 3. Fixed monthly payments of $1000 were required on the first day of each month beginning July 1. Complete the loan repayment schedule below. Assume that the interest rate remained at 8.75% for the life of the loan. Date Number of Days Interest Rate (%) Interest ($) Accrued Interest ($) Payment (Advance) ($) Principal Portion ($) Balance ($) Jun 3 - - - - - - 5000 Jul 1 28 8.75 33.56 33.56 1000 ? ? Aug 1 31 8.75 ? ? 1000 970.02 3063.54 Sep 1 31 8.75 22.77 22.77 1000 977.23 2086.31 Oct 1 30 8.75 15.00 15.00 1000 985.00 1101.31 Nov 1 31 8.75 8.18 8.18 1000 991.82 109.49 Dec 1 30 8.75 0.79 0.79 ? ? 0

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