Giovando, Lindstrom & Co. obtained a $6000 demand loan at prime plus 1.5% on April 1 to purchase new office furniture. The company agreed to fixed monthly payments of $1000 on the first of each month, beginning May 1. Calculate the total interest charges over the life of the loan if the prime rate started at 6.75% on April 1, decreased to 6.5% effective June 7, and returned to 6.75% on August 27. Present a repayment schedule in support of your answer.

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The Answer of Giovando, Lindstrom & Co. obtained a $6000 demand loan at prime plus 1.5% on April 1 to purchase new office furniture. The company agreed to fixed monthly payments of $1000 on the first of each month, beginning May 1. Calculate the total interest charges over the life of the loan if the prime rate started at 6.75% on April 1, decreased to 6.5% effective June 7, and returned to 6.75% on August 27. Present a repayment schedule in support of your answer.