Dr Robillard Obtained a $75,000 Operating Line of Credit at Prime

question 53

Essay

Dr. Robillard obtained a $75,000 operating line of credit at prime plus 1%. Accrued interest up to but not including the last day of the month is deducted from his bank account on the last day of each month. On February 5 (of a non-leap year) he received the first draw of $15,000. He made a payment of $10,000 toward principal on March 15, but took another draw of $7,000 on May 1. Prepare a loan repayment schedule showing the amount of interest charged to his bank account on the last days of February, March, April, and May. Assume that the prime rate remained at 3.5% through to the end of May.

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Definitions:

Stepfamilies

Families formed when one or both partners in a relationship have children from previous relationships and those children and the new partners live together.

Harmony

A pleasant combination or arrangement of different things that provides a consistent, orderly, or pleasing outcome, often used in relation to music or interpersonal relationships.

Extended Families

Family groups that extend beyond the nuclear family and include grandparents, aunts, uncles, and other relatives living in the same household or nearby.

Asians

Refers to people from the continent of Asia, encompassing a wide range of cultures, languages, and countries.