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.
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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?

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Definitions:

Peristalsis

Wave-like muscle movements that transport food through the digestive tract.

Pyloric Sphincter

The ring of muscle that regulates the passage of food from the stomach to the duodenum of the small intestine.

Gastric Ulcer

A sore on the lining of the stomach or duodenum often caused by infection, medication, or chronic stomach acid irritation.

Esophagitis

Inflammation of the esophagus, which can cause pain, difficulty swallowing, and other discomforts.