Question

Given: an 11% 120-day $9,000 note. find the adjusted balance (principal) using the u.s. rule (360 days) after the first payment on the 65th day of $1,000.

Answer 1

To find the adjusted balance (principal) using the U.S. rule (360 days), calculate the interest and subtract it from the original balance. The adjusted balance is $8,670.

Step-by-step explanation:

To find the adjusted balance (principal) using the U.S. rule (360 days), we need to calculate the interest and subtract it from the original balance.

Step 1: Calculate the interest using the formula Interest = Principal × Rate × Time.

Interest = $9,000 × 11% × (120/360) = $330.

Step 2: Subtract the interest from the original balance: Adjusted Balance = Original Balance - Interest.

Adjusted Balance = $9,000 - $330 = $8,670.

Answer 2

To find the adjusted balance (principal) using the U.S. rule (360 days) after the first payment on the 65th day, subtract the interest for the first 65 days from the original principal.

Step-by-step explanation:

To find the adjusted balance (principal) using the U.S. rule (360 days) after the first payment on the 65th day, we need to calculate the interest for the first 65 days and subtract it from the original principal.

Step 1: Calculate the interest for the first 65 days:

Interest = Principal × Rate × Time

Principal = $9,000

Rate = 11%

Time = 65 days ÷ 360 days

Plug in the values:

Interest = $9,000 × 0.11 × (65/360) = $174.17

Step 2: Subtract the interest from the original principal:

Adjusted Balance = Principal - Interest

Adjusted Balance = $9,000 - $174.17 = $8,825.83