$ Letter of credit or line of credit. As We Go Bank offers its customers a line-of-credit loan in which each month's outstanding balance has an interest charge at 12.4% APR Loan A and Loan D borrow the same amount each year. See schedule here: Loan A, however, borrows every month, and Loan D borrows every other month (note that the borrowing for Loan D for January equals the borrowing for Loan A for January and February). If As We Go Bank charges its customers for the unused balance, which loan strategy is better for the bank if the unused balance is charged 3.9% (APR) per month by the bank? Which loan borrowing strategy is better for the customer? Assume a $100,000 credit line. Find the unused balance for each month: (Round to the nearest dollar.) Data Table – X Outstanding Unused Outstanding Unused Balance Balance Balance Balance Month Loan A Loan A Loan D Loan D Click on the following Icon in order to paste this table's content into a spreadsheet January $22,442 $53,499 Outstanding Outstanding Outstanding Outstanding Balance Balance Balance Balance Month Loan A Loan B Loan C Loan D January $22,442 $68,391 $ 0 $53,499 February $31,057 $82,884 $ 0 $ 0 March $16.842 $96,912 $ 0 $40,934 April $24.092 $45,272 $98,224 $ 0 May $31,144 $13,643 $92,309 $80,115 June $48,971 $ 0 $95,542 $ 0 July $37,358 $ 0. $60,172 $66.926 August $29,568 $ 0 $54,798 $ 0 September $23,233 $22,238 $36,144 $47,845 October $24,612 $36,657 $22,047 $ 0 November $27,123 $48,587 $ 0 $45,163 December $18,040 $55,950 $ 0 $ 0 Print Done
PLACE YOUR ORDER TO GET STARTEDThe post $ Letter of credit or line of credit. As We Go Bank offers its customers a line-of-credit loan in wh appeared first on Essay Gem.