Biology Forums - Study Force

Determine the missing information for the following line of credit.

Harold has a line of credit secured by the equity in his home. The limit on his line of credit is $85 000. Transactions for the period May 1 to September 30 are shown below. Harold owed $45 967.06 on his line of credit on May 1.

   Principal    Principal    Interest
Date    Withdrawal    Payment    Payment    Balance
-----------------------------------------------------------------
May    01    -45 967.06
   30    1200.00   ?
June    23    5 050.00
   30    2200.00   ?
July    10    6700.00   ?
Aug    05    11 700.00
    31    8200.00   ?
Sept    30    6200.00   ?

Note: "-" indicates a negative balance.

Overdraft interest is 28.8% p.a. The line of credit interest is variable. It was 6.15% on May 1, 6.50% effective June 20, and 6.55% effective September 10.

a) Calculate the interest payments on May 31, June 30, July 31, August 31, and September 30.
b) What is the account balance on September 30?

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