Everlyne has a personal LOC with her bank with a maximum credit limit of $8,000.00. The interest rate is prime plus 1%, and the

Question

Everlyne has a personal LOC with her bank with a maximum credit limit of $8,000.00. The interest rate is prime plus 1%, and the current prime rate is 3%. Regardless of any account transaction activity, her bank requires on the first of every month for her to pay "the greater of 5% of the current balance or $100" from her checking account. She is allowed to exceed her maximum credit limit, but if she does the entire balance is subject to 22% interest until such time as the balance is restored below the credit limit. On October 1, the opening balance on her LOC was $2,600.00. She took advances of $3,600.00, $3,300.00, and $3,100.00 on October 17, November 17, and December 1, respectively. She made payments of $3,100.00, $3,300.00, and $3,600.00 on November 1, November 24, and December 16, respectively. The prime rate decreased by 0.75% on November 7. Complete the repayment schedule below by filling in the interest charges for October, November, and December.

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