Samantha borrowed $10,000 at prime + 2% on March 29. She agreed to payments of $2,000...

Samantha borrowed $10,000 at prime + 2% on March 29. She agreed to payments of $2,000 on the first day of each month beginning May 1. The prime rate was 4% when Samantha took out the loan. Construct a full repayment schedule showing details of the allocation of each payment to interest and principal. What is the final payment?

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Expert Solution

Interest on floating rate notes is calculated based on actual/360 day- count convention rule

Final payment = $158.61 on 1st October

jeff jeffy answered 1 year ago

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