Answer:
His adjusted balance after the first payment is $8106.94 ⇒ 2nd answer
Explanation:
* Lets explain how to solve the problem
- Lane Hall borrowed $11,000 on a 120-day 7 percent note.
∴ The principal amount is $11,000
∴ The interest rate is 7%
- Lane paid $3,000 on day 50
- Calculate interest on principal to the date of the first payment
∵ I = P × r × t, where I is the interest, r is the rate in decimal and t is
the time (exact number of days/360)
∵ P = 11,000
∵ r = 7/100 = 0.07
∵ t = 50/360
∴ I = 11,000 × 0.07 × 50/360 = 106.94
* The interest of the lone to the first payment is $106.94
- The new principal is the sum of the principal and the interest of
the lone to the first payment
∴ P = 11,000 + 106.94 = 11106.94
∵ Lane paid $3000 on day 50
∴ The balance after the payment = 11106.94 - 3000 = 8106.94
∴ His adjusted balance after the first payment is $8106.94