ApplicationsofSimpleInterestDemandLoans幻灯片.pptVIP

Chapter 7 Applications of Simple Interest;Common Terms And Conditions;;;The two most common demand loan arrangements are:;Revolving Loans (Operating Loan);;Example 7.4 A Calculation Of Interest On A Revolving Loan;;;Revolving Loan Repayment Schedule;Figure 7.1 Revolving Loan Repayment Schedule;A row is entered in the schedule when any of the following three events takes place:;;;;;;;;Example 7.4 B Repayment Schedule: Revolving Loan;;Example 7.4c: Warren has a $20,000 personal line of credit with the RBC Royal Bank. The interest rate is prime +2.5%. On the last day of each month, a payment equal to the greater of $100 or 3% of the current balance(including the current month’s accrued interest) is deducted from his chequing account. On July 6, he took his first advance of $2000. On August 15, he took another draw of $7500. The prime rate started at 6%, and rose to 6.25% on September 9. Prepare a loan repayment schedule up to and including September 30.;Fixed-Payment Loans;Example 7.4 D repayment schedule: blended-payment loan;