Amarjeet graduated from the University of Calgary on May 2 and has student loans totalling $31,000.00. The prime rate upon graduation was 4.5%. He has decided to pay in full the interest charged during the grace period (i.e., he is not converting it to principal) before starting monthly payments of $800.00 at the fixed interest rate. Complete the table below, including calculations for the grace period and the first three months of his repayment schedule. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63") (Give all "Number of Days" quantities as fractions with denominator 365.) Payment Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Advance (-) (+) or Principal Balance after Amount Transaction June 1 Nov 30 $31,000.00 7% (inclusive) Π $0.00 Dec 31 9.5% Jan 31 9.5% $800.00 $800.00 Feb 29 9.5% $800.00
Amarjeet graduated from the University of Calgary on May 2 and has student loans totalling $31,000.00. The prime rate upon graduation was 4.5%. He has decided to pay in full the interest charged during the grace period (i.e., he is not converting it to principal) before starting monthly payments of $800.00 at the fixed interest rate. Complete the table below, including calculations for the grace period and the first three months of his repayment schedule. (Round all monetary values to the nearest penny.) (Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63") (Give all "Number of Days" quantities as fractions with denominator 365.) Payment Date Balance Annual before Interest Transaction Rate Number Interest Accrued of Days Charged Interest Advance (-) (+) or Principal Balance after Amount Transaction June 1 Nov 30 $31,000.00 7% (inclusive) Π $0.00 Dec 31 9.5% Jan 31 9.5% $800.00 $800.00 Feb 29 9.5% $800.00
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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Transcribed Image Text:Amarjeet graduated from the University of Calgary on May 2 and has student loans totalling $31,000.00. The prime rate upon graduation was 4.5%. He has decided to pay
in full the interest charged during the grace period (i.e., he is not converting it to principal) before starting monthly payments of $800.00 at the fixed interest rate. Complete
the table below, including calculations for the grace period and the first three months of his repayment schedule.
(Round all monetary values to the nearest penny.)
(Use a minus sign before the dollar sign to denote a negative monetary value. For example, "-$149.63")
(Give all "Number of Days" quantities as fractions with denominator 365.)
Payment
Date
Balance Annual
before Interest
Transaction Rate
Number
Interest Accrued
of Days Charged Interest Advance
(-)
(+) or
Principal Balance after
Amount Transaction
June 1
Nov 30
$31,000.00
7%
(inclusive)
Π
$0.00
Dec 31
9.5%
Jan 31
9.5%
$800.00
$800.00
Feb 29
9.5%
$800.00
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