Question

Caridad borrowed $15,500 at 11% ordinary interest for 120 days. After 70 days, she made a partial payment of $3,000. What is the final amount due on the loan? (Round to the nearest cent)

Answer 1

15 500 at 11% ordinary interest for 120 days.
=> 120 days = approximately 4 months.
=> 15 500 * .11 = 1705 dollars interest
=> 15 500 + 1750 = 17 205 dollars 
=> 17 205 dollars  - 3000 dollars after 70 days = 14 205 dollars is the amount due