Dr Chan Obtained a $15,000 Demand Loan at Prime Plus

question 117

Short Answer

Dr. Chan obtained a $15,000 demand loan at prime plus 1.5% on September 13 from the Bank of Montreal to purchase a new dental X-ray machine. Fixed payments of $700 will be deducted from the dentist's chequing account on the 20^th of each month, beginning October 20. The prime rate was 7.5% at the outset, dropped to 7.25% on the subsequent November 26, and rose to 7.75% on January 29. Prepare a loan repayment schedule showing the details of the first five payments.

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Definitions:

Constitutional Rights

Rights granted and protected by a country's constitution, ensuring certain freedoms and protections to its citizens.

The Ends Justify The Means

A consequentialist belief that a morally good outcome may justify methods that are considered morally questionable or reprehensible.

Retribution

The concept of punishment inflicted on someone as vengeance for a wrong or criminal act, focusing on making the punishment fit the crime.

Civil Liberties

Individual rights protected by law from unjust governmental or other interference.