Given Principal $21, 000, Interest Rate 11%, Time 240 days (use ordinary interest) On 100th day, $8,000 On 180th day, $4,500 Partial payments: a. Use the U.S. Rule to solve for total interest cost. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Total interest cost b. Use the U.S. Rule to solve for balances. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) On 100th day On 180th day Balance after the payment %24 %24 c. Use the U.S. Rule to solve for final payment. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Final payment %24
Given principal = $21000, Rate of interest = 11%, Time = 240 days
First payment on 100th days, so interest for 100 days =
($21000x11%x100/360) = $641.67
Total due after 100 days = Principal + Interest
= $21000 + $641.67 = $21641.67
Payment after 100 days = $8400
Balance left after 100 days = Total due – Payment
= ($21641.67 – $8000) = $13,641.67
Second payment on 180th day, so interest for 80(180-100) days on $13,641.67 =
($13,641.67x11%x80/360) = $333.46
Total due after 180 days = Principal + Interest
= $13,641.67 + $333.46 = $13,975.13
Payment after 180 days = $4500
Balance left after 180 days = Total due after 100th day– Payment
= ($13,975.13 – $4500) = $9,475.13
Third payment on 240th day, so interest for 60 (240-180) days on $9,475.13 =
($9,475.13x11%x60/360) = $173.71
Total due after 240 days = Principal + Interest
= $9,475.13 + $173.71= $9,648.84
Payment on 240th day = $9,648.84.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
