Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime +2.75%. Her current balance owing on November 1 is $14,500.00 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 $2,750.00 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 Balance before Transaction Annual Interest Rate Number Interest Accrued Interest of Days Charged Payment (+) or Advance (-) Principal Balance after Amount Transaction Nov 1 $14,500.00 Dec 1 6.25% Jan 1 6.25% Jan 19 6.25% $2,750.00 Feb 1 6.25%
Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime +2.75%. Her current balance owing on November 1 is $14,500.00 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 $2,750.00 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 Balance before Transaction Annual Interest Rate Number Interest Accrued Interest of Days Charged Payment (+) or Advance (-) Principal Balance after Amount Transaction Nov 1 $14,500.00 Dec 1 6.25% Jan 1 6.25% Jan 19 6.25% $2,750.00 Feb 1 6.25%
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Transcribed Image Text:Gayle has a HELOC with MCAP Financial Corporation at an interest rate of prime +2.75%. Her current balance owing on November 1 is $14,500.00 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 $2,750.00 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
Balance
before
Transaction
Annual
Interest
Rate
Number Interest Accrued
Interest
of Days Charged
Payment
(+) or
Advance
(-)
Principal Balance after
Amount Transaction
Nov 1
$14,500.00
Dec 1
6.25%
Jan 1
6.25%
Jan 19
6.25%
$2,750.00
Feb 1
6.25%
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