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Brut [27]
3 years ago
6

The Sweet Tooth Restaurant borrowed $3,000 on a note dated May 15 with a simple interest of 11%. The maturity date of the loan i

s September 1. The restaurant made partial payments of $875 on June 15 and $940 on August 1. Find the amount due on the maturity date.
Business
1 answer:
Crazy boy [7]3 years ago
4 0

Answer:

Amount due is $1,256.14

Explanation:

Calculation of the interest to date at time of 1st partial payment

I1=PRT1

I1= 3,000 * 0.11 * 31/360

I1= $28.42

Remaining Principal = Principal + Interest - Payment

P1 = 3,000 + 28.42 - 875

P1 = $2,153.42

Calculation of the interest to date at time of 2nd partial payment

I2 = P1RT2

I1= 2,153.42* 0.11 * 47/360

I1= $30.93

Remaining Principal = Principal + Interest - Payment

P2= 2,153.42 + 30.93 - 940

P2= $1,244.35

Calculation of the remaining interest on the maturity date

I3= P2RT3

I3= 1,244.35 * 0.11 * 0.31/360

I3= $11.79

Amount due = Remaining Principal + Interest

P3= 1,244.35 + 11.79

P3= $1,256.14

Thus, the amount due is $1,256.14

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