You Have a Line of Credit Loan with the Bank

question 52

Essay

You have a line of credit loan with the Bank of Hong Kong. The initial loan balance was $7000.00. Payments of $3000.00 and $2500.00 were made after four months and ten months respectively. At the end of one year, you borrowed an additional $4250.00. Seven months later, the line of credit loan was converted into a collateral mortgage loan. What was the amount of the mortgage if the line of credit interest was 8.52% compounded monthly?

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Definitions:

Coefficient Of Determination

A statistical measure, represented as R-squared, that shows the proportion of variance for a dependent variable that's predicted by an independent variable(s).

Correlation

A statistical measure that describes the extent to which two variables change together, but does not necessarily imply causation.

Coefficient Of Correlation

A measure that indicates the extent to which two variables change together, and the direction of their relationship, with a range from -1 to 1.

Coefficient Of Determination

A statistical measure that assesses the proportion of variance in a dependent variable predictable from an independent variable, often denoted as R².