Biology Forums - Study Force

Harjap completed his program at Nova Scotia Community College in December. On June 30, he paid all the interest that had accrued (at prime plus 2.5%) on his $5800 Canada Student Loan during the 6-month grace period. He selected the fixed rate option (prime plus 5%) and agreed to make end-of-month payments of $95 beginning July 31. The prime rate began the grace period at 8% and rose by 0.5% effective March 29. On August 13, the prime rate rose another 0.5%. The relevant February had 28 days.

a) What amount of interest accrued during the grace period?
b) Complete the repayment schedule below.

Date	Number of Days	Interest Rate (%)	Interest ($)	Accrued Interest ($)	Payment (Advance) ($)	Principal Portion ($)	Balance ($)
Jul 1	-	-	-	-	-	-	5800
Jul 31	30	13.5	?	?	95	30.64	5769.36
Aug 31	31	?	66.15	66.15	?	28.85	5740.51
Sep 30	30	13.5	63.70	63.70	95	31.30	?

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