Question

Max Staxx borrowed $2,000 on a 10%, 120 day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an additional $630. What is the final balance due. Use ORDINARY interest.

Answer 1

$670 is the final balance due that max wants to pay.                                                                                  

Explanation:

• Max borrowed a $2000 amount on a 120-day note. First, he paid $700 in the 120-day note. So the current amount he paid is $700.
• After thirty days max paid the amount of $630. So totally he paid $1330 in a note of 75 days. So 45 days are remaining.
• So the final balance due is $670. So Max wants to pay $670 on a note of 45 days.