Question

A note with a face value of $145,000 is made on December 10.

The note is for 75 days and carries interest of 13.5%.

A partial payment of $55,000 is made on January 8.

Find the amount due on the maturity date of the note.

Answer 1

Hi there^_^

The formula is
A=p (1+rt)
We need first to find the number of days till the partial payment
From December 10 till January 8
December (31-10) 21+8 January
There are 29 days so
A=145,000×(1+0.135×(29÷365))
A=146,555.27
Now subtract 55000
A=146,555.27−55,000
A=91,555.27
After that find the amount due on the maturity date
The rest of the days
75-29=46 days

A=91,555.27×(1+0.135×(46÷365))
A=93,112.96 amount due after 75 days

Hope it helps