Question

50 points

Barbara Young owes $39,600 on a 6%, 110-day note. On day 75, she pays $11,880 on the note. On day 80, she pays an additional $15,840.

Based on the U.S. Rule, calculate the following. (Use a 360-day year, and round all answers to the nearest cent.)

1. Adjusted balance after the first payment: $
2. Adjusted balance after the second payment: $
3. Balance at maturity: $

Answer 1

$13,080.50 + $13,080.50 x 0.06 x 30/360 = $13,393.03

Explanation:

Adjusted balance after the first payment: $39,600 + $39,600 x 0.06 x 75/360 - $11,880 = $28,770

Adjusted balance after the second payment: $28,770 + $28,770 x 0.06 x 5/360 - $15,840 = $13,080.50 tell me if it's not clear