With penalties added on for the two missed payments, the total amount owed now is $1,740.76.
The first step is to calculate the interest on the two missed payments. Since each payment is made every 3 months, there are 9 months in total since the first payment was due. To calculate the interest, we will use the formula:
Interest = Principal * Rate * Time
Here, the principal is $550, the rate is 11% per year, and the time is 9 months or 0.75 years.
Interest on the first missed payment:
Interest1 = $550 * 0.11 * 0.75
Interest on the second missed payment:
Interest2 = $550 * 0.11 * 0.75
Next, we need to add the interest to the missed payments and the current payment to find the total amount owed.
Total amount owed = Missed Payment 1 + Missed Payment 2 + Current Payment + Interest1 + Interest2
Substituting the values:
Total amount owed = $550 + $550 + $550 + Interest1 + Interest2
Now, we can calculate the interest on the missed payments:
Interest1 = $550 * 0.11 * 0.75 = $45.38 (rounded to the nearest cent)
Interest2 = $550 * 0.11 * 0.75 = $45.38 (rounded to the nearest cent)
Plugging in the values, we get:
Total amount owed = $550 + $550 + $550 + $45.38 + $45.38
Total amount owed = $1,740.76 (rounded to the nearest cent)
Therefore, with penalties added on for the two missed payments, the total amount owed now is $1,740.76.