$9,000.00 and $12,000.00 on April 6 and June 21. The interest rate on her HELOC sits at prime plus 1.75%. On March 1, the prime April 19, it rose by 0.5%. Complete the repayment schedule below by filling in the appropriate numbers of days. (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Mar 1 $16,000.00 Mar 23 $16,000.00 5.5% $53.04 $53.04 -$7,000.00 -$7,000.00 $23,000.00 Apr 1 $23,000.00 5.5% $31.19 $84.23 Apr 6 $23,000.00 5.5% $17.33 Apr 19 $14,000.00 5.5% $27.42 $84.23 $17.33 $9,000.00 $44.75 $0.00 $0.00 $23,000.00 $9,000.00 $14,000.00 $0.00 $14.000.00

$9,000.00 and $12,000.00 on April 6 and June 21. The interest rate on her HELOC sits at prime plus 1.75%. On March 1, the prime April 19, it rose by 0.5%. Complete the repayment schedule below by filling in the appropriate numbers of days. (Give all "Number of Days" quantities as fractions with denominator 365.) Date Balance before Transaction Annual Interest Rate Number Interest Accrued of Days Charged Interest Payment (+) or Advance Principal Amount Balance after Transaction (-) Mar 1 $16,000.00 Mar 23 $16,000.00 5.5% $53.04 $53.04 -$7,000.00 -$7,000.00 $23,000.00 Apr 1 $23,000.00 5.5% $31.19 $84.23 Apr 6 $23,000.00 5.5% $17.33 Apr 19 $14,000.00 5.5% $27.42 $84.23 $17.33 $9,000.00 $44.75 $0.00 $0.00 $23,000.00 $9,000.00 $14,000.00 $0.00 $14.000.00

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Mrs. Chen has been approved for a personal (revolving) line of credit with National Bank at prime plus 2%. On the 15th of each month, interest is calculated (up to but not including the 15) and deducted from her chequing account. If the initial loan of $25,000 on July 2 was followed by a further advance of $30,000 on July 28, how much interest was charged on August 15. The prime rate was at 3% on July 2 and fell to 2.75% on August 5. Show all rough work (complete the table filling in all blank information) Period Number of days Principal ($) Rate (%) Interest ($) $25,000 x 0.05 x 13/365 = 44.5205 July 2-15 13 25,000 5.00 Total (Interest Due on Aug 15): Paragraph BIU
Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime +2.75%. Her current balance owing on November 1 is $13,250.00 and she is required to make interest-only payments on the first of every month. The prime rate is set at 3.5%. She makes one payment of $3,000.00 on January 19. Create three months of her repayment schedule. (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 Nov 1 Dec 1 Jan 1 Jan 19 Feb 1 Balance before Transaction Annual Number Interest Accrued Interest of Days Charged Interest Rate 6.25% 6.25% 6.25% 6.25% Payment (+) or Advance (-) $3,000.00 Principal Balance after Transaction Amount $13,250.00
Recall that Kate previously obtained a $15,000 bank loan, signing a note payable, on November 30. The note required semiannual interest payments at the rate of 6 percent. The entire principal balance was due two years from the origination date of the note. Kate has been accruing interest on a monthly basis in the amount of $75. Kate would like to know how she should record the interest in May, the month she makes the first interest payment. She is unsure how much expense will need to be recorded in May. The upcoming interest payment is really not Kate’s main concern right now. She was just notified by a lawyer that she is being sued for copyright infringement. Mega Cards Incorporated, one of the largest greeting card companies, believes that one of Kate’s designs is too similar to one of Mega’s designs for it to be coincidence, and has, therefore, decided to sue Kate’s Cards. Mega has a prior reputation for suing small companies and settling out of court for lesser damages. Kate,…
On March 12, Nada joined a saving account. Her bank will automatically deduct BD 200 from her checking account at the end of each month, and deposit it into her saving account, where it will earn 5 % annual interest. The account comes to term on December 1. Find the following: a. Find the future value of Nada’s saving account. b. Find Nada’s total contribution to the account. c. Find the total interest earned on the account.
On May 11, Ali joined a gulf club. His bank will automatically deduct BD 120 from his checking account at the end of each month, and deposit it into his gulf club account, where it will earn 8% annual interest. The account comes to term on October 7. Find the following: a. Find the future value of Ali's gulf club account. b. Find Ali's total contribution to the account. C. Find the total interest earned on the account.
Recall that Kate previously obtained a $15,000 bank loan, signing a note payable, on November 30. The note required semiannual interest payments at the rate of six percent. The entire principal balance was due two years from the origination date of the note. Kate has been accruing interest on a monthly basis in the amount of $75. Kate would like to know how she should record the interest in May, the month she makes the first interest payment. She is unsure how much expense will need to be recorded in May. The upcoming interest payment is really not Kate’s main concern right now. She was just notified by a lawyer that she is being sued for copyright infringement. Mega Cards Incorporated, one of the largest greeting card companies, believes that one of Kate’s designs is too similar to one of Mega’s designs for it to be coincidence, and has, therefore, decided to sue Kate’s Cards. Mega has a prior reputation for suing small companies and settling out of court for lesser damages. Kate,…
On March 12, Nada joined a saving account. Her bank will automatically deduct BD 200 from her checking account at the end of each month, and deposit it into her saving account, where it will earn 5 % annual interest. The account comes to term on December 1. Find the following: a. Find the future value of Nada’s saving account. b. Find Nada’s total contribution to the account. c. Find the total interest earned on the account. a. a.1899 b.1800 c. 99 BD b. a.1949 b.1900 c. 49 BD c. a.1149 b.1100 c. 49 BD d. a.1829 b.1800 c. 29 BD e. a.2839 b.2800 c. 39 BD
On August 19, Siobhan O’Sullivan started an ordinary annuity. She arranged to have $150 deducted from her end-of-month paychecks. The money would earn 6 7/8 % interest compounded monthly. a) Find the future value of the account on December 1.b) Find Siobhan’s total contribution to the account.c) Find the total interest earned.
Donia borrowed $7000 from her credit union on a demand loan on July 20 to purchase a motorcycle. The terms of the loan require fixed monthly payments of $1400 on the first day of each month, beginning September 1. The floating rate on the loan is prime plus 3%. The prime rate started at 5.75%, but rose 0.5% on August 19, and another 0.25% effective November 2. Prepare a loan repayment schedule presenting the amount of each payment and the allocation of each payment to interest and principal. (Round your answers to the nearest cent.) Date 20-Jul 19-Aug 1-Sep 1-Oct 1-Nov 2-Nov 1-Dec 1-Jan 1-Feb Number of days --- 30 13 30 31 1 29 31 31 Interest rate (%) --- 8.75 9.25 9.25 9.25 9.25 9.50 9.50 9.50 Interest ($) --- 50.34 Accrued Interest ($) --- 50.34 Payment Principal (Advance) ($) Portion ($) Balance ($) 7,000.00 7,000.00
On May 6, May Payment makes a purchase of $258.50 on her credit card. The purchase appears on her monthly statement issued May 18. May does not pay for the purchase by the due date indicated on her May statement. Her next monthly statement is issued on June 18. Calculate the interest she is charged for her purchase on her June statement. Assume her lending institution charges her an annual interest rate of 19.75%, and she has an interest-free period of 21 days.
Donla borrowed $7,000 from her credit union on July 20 on a demand loan to buy the motorcycle. The loan terms require fixed monthly payments of $1400 on the first of each month beginning September 1st. The floating rate on the loan is prime plus 3%. The prime rate started at 5.75%, but rose 0.5% on 19 August, and another 0.25% effective 2 November. Create a loan repayment schedule presenting the amount of each payment and the allocation of each payment to interest and principal
she is required to make interest-only payments on the first of every month. The prime rate is set at 3.25%. She makes one payment of $3,000.00 on January 19. Create three months of her repayment schedule. (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.) \table[[Date,\table[[Balance],[before],[Transaction]],\table[[Annual],[Interest],[Rate]],\table[[Number],[of Days]],\table[[Interest],[Charged]],\table[[Pccrued],[Interest],[(+) or],[Advance],[(-)

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