Bronwyn's $15,000 Line of Credit Is at Prime Plus 2

Short Answer

Bronwyn's $15,000 line of credit is at prime plus 2.5%. The minimum payment (the greater of $100 or 3% of the combined principal and accrued interest) is automatically deducted from her chequing account on the 15^th of each month. After the payment on August 15, her balance was $3,589.80. To reduce the loan faster, she makes an additional discretionary payment of $300 on the last day of each month. Each $300 payment is applied entirely to principal. Prepare a repayment schedule for the August 15 to November 15 period. The prime rate was at 6.25% on August 15 but dropped 0.25% effective October 11.