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lara [203]
3 years ago
7

Roger Rong borrowed $12,000 on 120 - day 11 percent note. Roger paid $4,000 toward the note on day 40. On day 110 he paid an add

itional $3,000. Using the U.S. Rule his adjusted balance after the 1st payment is
Mathematics
1 answer:
nata0808 [166]3 years ago
3 0

Answer:

$8146.67

Step-by-step explanation:

Under the U.S. Rule, unpaid accrued interest is accumulated separately and is not added to principal. In addition, interest is not calculated until a payment is made.

                                                            Principal = $12 000.00

1st period = 40 days

Interest on 1st period

= $12 000 × 0.11 × 40/360                   Interest =         146.67

                                           Principal + interest =    12 146.67

                                               -Partial payment =    4 000.00

                                            Adjusted balance = $  8 146.67

Roger's adjusted balance after the first payment is $8146.67.

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