Determine the Missing Information for the Following Line of Credit

question 85

Essay

Determine the missing information for the following line of credit.
Harold has a line of credit secured by the equity in his home. The limit on his line of credit is $85 000. Transactions for the period May 1 to September 30 are shown below. Harold owed $45 967.06 on his line of credit on May 1.
-----------------------------------------------------------------
Note: "-" indicates a negative balance.
Overdraft interest is 28.8% p.a. The line of credit interest is variable. It was 6.15% on May 1, 6.50% effective June 20, and 6.55% effective September 10.
a) Calculate the interest payments on May 31, June 30, July 31, August 31, and September 30.
b) What is the account balance on September 30?

---

Definitions:

Prisoners of War

Individuals who are captured and held by an enemy during an armed conflict. These prisoners have certain rights under international law.

Increased Interest in Sex

A heightened desire or inclination towards sexual activity, which may result from psychological, physiological, or social factors.

Self-Discipline

The ability to control one's feelings, impulses, and actions to achieve long-term goals, often requiring personal sacrifice or delay of gratification.

Higher Achievement

Refers to exceeding standard levels of performance or success in activities, education, or personal goals.