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?

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 2 years ago

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