FIGURE 81 Basic Design of a Loan Repayment Schedule

question 41

Essay

FIGURE 8.1 Basic Design of a Loan Repayment Schedule
Use the design shown in Figure 8.1 to construct a complete repayment schedule including the totaling of the Amount Paid,Interest Paid,and Principal Repaid columns for the following loan.
On April 22,Tim borrowed $2900.00 from Keewatin Credit Union at 6.5% per annum calculated on the daily balance.He gave the Credit Union four cheques for $535.00 dated the 15th of each of the next four months starting May 15 and a cheque dated October 15 for the remaining balance to cover payment of interest and repayment of principal.

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Definitions:

State Variables

Variables that represent the configurations or states of a system at a certain time, in disciplines such as physics, engineering, and economics.

Average Number

The central value of a set of numbers, calculated by dividing the sum of all values by the count of the numbers.

Customers

Individuals or entities that purchase goods or services from a business or organization.

System

A set of interacting or interrelated elements working together as part of a complex and unified whole.