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 months later, she repays 740 dollars. If no other transactions take place and the interest rate is 0.95 percent per month (compounded monthly), how much will she owe two years after she opened the line of credit?

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 months later, she repays 740 dollars. If no other transactions take place and the interest rate is 0.95 percent per month (compounded monthly), how much will she owe two years after she opened the line of credit?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

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