As a follow-up to the previous question, Yogi’s Construction…
As a follow-up to the previous question, Yogi’s Construction has a $100,000 line of credit at the Jellystone Bank. The annual percentage rate is the current prime rate plus 3%. The balance on October 1 was $22,500. On October 10, Yogi borrowed $15,000 to pay for a shipment of lumber and on October 20 he borrowed another $32,500 for equipment repairs. On October 25, Yogi made a $30,000 payment on the account. The billing cycle for October has 31 days. The current prime rate is 6%. b) _____________ What is Yogi’s new balance?
Read DetailsGeorge and Martha Washington are purchasing a house in Elk G…
George and Martha Washington are purchasing a house in Elk Grove financed with an adjustable-rate mortgage. The margin on the loan is 3.75%, and the rate cap is 6.25% over the life of the loan. The current index rate is 3.90%. What is the calculated initial interest rate of the ARM?
Read DetailsDani Jackson has a Bank of Florin revolving credit account w…
Dani Jackson has a Bank of Florin revolving credit account with an annual percentage rate of 36% calculated on the previous month’s balance. In April, the account had the following activity: On April 1 the previous balance was $301.98; on April 8, Dani charged $250.00 at Mason’s Gym; on April 9 he made a payment of $75.00; on April 15 he spent $124.80 at Nordstrom; on April 25 he took out a $100.00 cash advance; and on April 28 he stayed at the Rimrock Hotel for $178.90 ________________What is the finance charge?
Read DetailsAs a follow-up to the previous question, George and Martha W…
As a follow-up to the previous question, George and Martha Washington are purchasing a house in Elk Grove financed with an adjustable-rate mortgage. The margin on the loan is 3.75%, and the rate cap is 6.25% over the life of the loan. The current index rate is 3.90%. What is the maximum overall rate of the loan?
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