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Home Q & A Board Science-Related Homework Help Mathematics
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gewusel gewusel
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6 years ago
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?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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AxyAxy
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gewusel Author
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6 years ago
Helped a lot
gmiannotti
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Yesterday
I appreciate what you did here, answered it right Smiling Face with Open Mouth
brina10
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2 hours ago
Smart ... Thanks!
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