Question

Jones of Boston borrowed $40,000, on a 90-day 10% note. After 60 days, Jones made an initial payment of $6,000. On day 80, Jones made an additional payment of $7,000. Assuming the U.S. Rule, what's the adjusted balance of the first payment? (Use 360 days.) A. $34,666.67 B. $49,666.67 C. $54,696.67 D. $56,696.67

Answer 1

Balance on 60th day PRIOR to payment
=40000(1+10%*(60/360))
=40666.67

Balance after payment of $6000
=40666.67-6000
=$34666.67