Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lacy has a $49,500.00 student loan when she gradua

Lacy has a $49,500.00 student loan when she graduates on May 4, and the prime...

70.2K

Verified Solution

Question

Accounting

Lacy has a $49,500.00 student loan when she graduates on May 4, and the prime rate is set at 4.5%. She has decided at the end of the grace period to convert the interest to principal, and she sets her fixed monthly payment at $950.00. She opts for the variable rate on her student loan. Create the first four repayments of her repayment schedule. Calculate the total interest charged for both the grace period and the four payments combined. Assume February does not involve a leap year.
(Round all monetary values to the nearest penny.)
(Use a minus sign before the dollar sign to denote a negative monetary value. For example, -$149.63".)
(Give all "Number of Days" quantities as fractions with denominator 365.)
\table[[Date,\table[[Balance],[before],[Transaction]],\table[[Annual],[Interest],[Rate]],\table[[Number],[of Days]],\table[[Interest],[Charged]],\table[[Accrued],[Interest],[(+) or],[Advance],[(-)
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students