Doina borrowed $7000 from her credit union on a demand loan on July 20 to purchase a motorcycle. The terms of the loan require fixed monthly payments of $1400 on the first day of each month, beginning September 1. The floating rate on the loan is prime plus 3%. The prime rate started at 5.75%, but rose 0.5% on August 19, and another 0.25% effective November 2. Prepare a loan repayment schedule presenting the amount of each payment and the allocation of each payment to interest and principal.

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The Answer of Doina borrowed $7000 from her credit union on a demand loan on July 20 to purchase a motorcycle. The terms of the loan require fixed monthly payments of $1400 on the first day of each month, beginning September 1. The floating rate on the loan is prime plus 3%. The prime rate started at 5.75%, but rose 0.5% on August 19, and another 0.25% effective November 2. Prepare a loan repayment schedule presenting the amount of each payment and the allocation of each payment to interest and principal.

Doina Borrowed $7000 from Her Credit Union on a Demand