Benjamin Has a $20,000 Personal Line of Credit at Prime

Short Answer

Benjamin has a $20,000 personal line of credit at prime plus 2% with his credit union. His minimum end-of-month payment is the greater of $100 or 3% of the combined principal and accrued interest. After his payment on April 30, his balance was $3,046.33. On May 23, he used his income tax refund to make a principal payment of $1,000. On July 17, he took a $7,000 advance to purchase a car. The prime rate began at 6%, rose 0.25% on June 25, and jumped another 0.25% on July 18. Prepare a loan repayment schedule showing details of payments on May 31, June 30, and July 31.