Thread: Repayment schedule

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.

Required:
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

Originally Posted by petedam

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?

Can't see your attachment: "Unknown File Type" message.

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?

Originally Posted by Wilmer

Can't see your attachment: "Unknown File Type" message.

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.

thanks

Agree