Question

andres michael bought a new boat. he took out a loan for $24,240 at 4.75% interest for 3 years. he made a $4,450 partial payment at 3 months and another partial payment of $2,710 at 8 months. how much is due at maturity?

Answer 1

The amount due at maturity on Andres Michael's loan is $16,174.60.

Step-by-step explanation:

To calculate the amount due at maturity, we first need to calculate the remaining balance on the loan after the partial payments. The initial loan amount is $24,240, and the interest rate is 4.75%. The loan term is 3 years. We can calculate the monthly interest rate by dividing the annual interest rate by 12:

Monthly interest rate = (4.75 / 100) / 12 = 0.00396

Next, we can calculate the remaining balance after the first partial payment. After 3 months, the total interest accumulated is:

Total interest = 24,240 * 0.00396 * 3 = 287.92352

The remaining balance is then:

Remaining balance = 24,240 - 4,450 - 287.92352 = 19,502.07648

Similarly, we can calculate the remaining balance after the second partial payment. After 8 months, the total interest accumulated is:

Total interest = 19,502.07648 * 0.00396 * 8 = 617.4807794688

The remaining balance is then:

Remaining balance = 19,502.07648 - 2,710 - 617.4807794688 = 16,174.5957005312

Hence, the amount due at maturity is $16,174.60.