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Math Help - Repayment schedule

  1. #1
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    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
    Attached Files Attached Files
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  2. #2
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    Quote Originally Posted by petedam View Post
    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?
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  3. #3
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    Quote Originally Posted by Wilmer View Post
    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
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  4. #4
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    Agree
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