Suzanne opens a line of credit at a local bank, and immediately borrows 1510 dollars. 5 months later, she repays 1120 dollars. 2 months after the repayment, she borrows 560 more dollars, 4 monchs later, she repavs 740 dollars. If no other transactions take place and the interest rate is 0.95 percent per month (compounded monthlylow much will she owe two years after she opened the line of credit? Answer 396 dollars.
Suzanne opens a line of credit at a local bank, and immediately borrows 1510 dollars. 5 months later, she repays 1120 dollars. 2 months after the repayment, she borrows 560 more dollars, 4 monchs later, she repavs 740 dollars. If no other transactions take place and the interest rate is 0.95 percent per month (compounded monthlylow much will she owe two years after she opened the line of credit? Answer 396 dollars.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 31P
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Transcribed Image Text:Suzanne opens a line of credit at a local bank, and immediately borrows 1510 dollars. 5 months later, she repays 1120 dollars. 2 months after
the repayment, she borrows 560 more dallars, 4 months later, she repavs 740 dollars. If no other transactions take place and the interest rate
is 0.95 percent per month (compounded monthlydw much will she owe two years after she opened the line of credit?
Answer= 396
dollars.
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