Stefan finished his college program on June 3 with Canada Student Loans totalling $12,490. He decided...

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Stefan finished his college program on June 3 with Canada Student Loans totalling $12,490. He decided to capitalize the interest that accrued (at prime plus 2.5%) during the grace period. Upon consolidation, he chose the floating rate option of prime +2.5%. Stefan's first end-of-month payment of $275 was made on January 31. The prime rate on June 3 was 3.75%, increased to 3.85% effective August 8, and increased again to 4.05% effective January 5. Calculate the balance owed on the loan after the January 31 payment. (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stefan's loan balance $ Stefan finished his college program on June 3 with Canada Student Loans totalling $12,490. He decided to capitalize the interest that accrued (at prime plus 2.5%) during the grace period. Upon consolidation, he chose the floating rate option of prime +2.5%. Stefan's first end-of-month payment of $275 was made on January 31. The prime rate on June 3 was 3.75%, increased to 3.85% effective August 8, and increased again to 4.05% effective January 5. Calculate the balance owed on the loan after the January 31 payment. (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Stefan's loan balance $

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To calculate Stefans loan balance after the January 31 payment we need to consider the interest that ... View the full answer