Oxford Furniture has a new $75,000 revolving line of credit on March 1. They drew $30,000 down on March 7, another $15,000 on March 24, and $12,000 on April 22. Interest is at prime plus 1.5% calculated on the 15th of the month. Prime was 5.25% on March 1 and dropped by 0.5% on April 5.
Present a loan repayment schedule showing details of transactions up to May 15.
I have attached the answer...can someone tell me if this is correct?
Thanks in advance
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Originally Posted by petedam
WHY are you calling this a "loan repayment schedule"?
No payments have been made!
Only 6 transactions: 3 loan debits and 3 interest charges...right?
That's the part that confuses me. The question asks me to do a repayment schedules. it however does not tell me when a loan should be paid. So all i did was calculate the interest and pay the interest on the 15th of every month until May 15th.
Originally Posted by Wilmer