Your Credit Contract Schedule. To [Name And Address Of

According to the conditions above, what should their monthly payment be? If Kelsey and Cody do not send their payment in on time, what will the following month’s payment be?

One assumption that should be clearly analyzed is that the collection period is of 30 days net. Not always customers have the ability and willingness to pay off their debts in 30 days, some may take more time, and some could incur in bad debt.

with the interest of 4.45 percent would have to pay 1,000 dollars more than this academy year

• You must pay at least the minimum payment by the payment due date to avoid late fees, to avoid the loss of any promotional rates and to keep your account in good standing.

Case 4: As of January 1, the Lohse Company owes the First Arbor Bank $350,000 which is due on December 31. Since Lohse seems unable to repay the note, the bank agreed that Lohse can “settle” this balance by agreeing to make four, annual installments on each of the next four years, provided that it adds a “due on

In Question 6, the payment occurs at the beginning of each period rather than at the end, this type of annuity is named as annuity due.

For example, a Medicare-required 14-day assessment with an ARD of Day 12 (1 day early) would be paid at the default rate for the first day of the payment period that begins on day 15.

1) Establish the principal and interest amount of the monthly payment. Using the 30 year loan principal and interest amount of the payment is $1,150.92

6. To avoid the loss of your credit rating, please remit payment within 10 days.

Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued 
during November and December.) Round to nearest dollar.

At the time of the sale, the company receives immediate payment for the stated principal amount of the installment contract and a portion of the finance participation resulting from the interest rate differential. The remainder of the interest rate differential is retained by the financial institution as a security against credit losses and is paid to the company in proportion to customer payments received by the financial institution.

do not have any specific repayment provisions other than the overall expiration date of the

The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%.

3. The balance due hereunder shall be mailed within ten working days following the performance.

1. Currently, the collection period of Oracle is at 137 days which is higher than the industry average of 62 days. The company must reduce credit terms implementing tighter credit control activities