Answer:
$5,030.40
Step-by-step explanation:
The balance outstanding at the end of any month is the due amount after adjusting for interest and loan repayment amount. The amount outstanding can be calculated as:
<u>First month</u>
Due amount = $6,000
Interest at 2% = $6,000*2% = $120
Loan repayment = $600
Reduction in balance = $600 - $120 = $480
Balance remaining = $6,000 - $480 = $5,520
<u>Second month</u>
Due amount = $5,520
Interest at 2% = $5,520*2% = $110.4
Loan repayment = $600
Reduction in balance = $600 - $110.4 = $489.60
Balance remaining = $5,520 - $489.60 = $5030.40
Hence, the balance outstanding at the end of month 2 is $5,030.40
First you have to make the assumption that these are the only two outcomes. There is also the possibility of hitting the ball and getting out.
However, if we assume that these are the only two cases, we know that the probability is 58.3%. This is because it has been on base 7 times out of 12.