Question

Shawn Bixby borrowed $39,000 on a 150-day, 9% note. After 80 days, Shawn paid $4,200 on the note. On day 113, Shawn paid an additional $6,200. Use ordinary interest. a. Determine the total interest use the U.S. Rule. (Do not round intermediate calculations. Round your answer to the nearest cent.)

Answer 1

Answer:

1,073.54 total interest

Explanation:

39,000 x 9% x 80days/360 = 780 interest expense

Payment 4,200 - 780 = 3,420 deducted form the note:

39,000 - 3,420 = 35,580

35,580 x 9% x 33/360 = 293.54 interest expense

6,200 - 293.54 = 5,906.47 deduced form the note

35,580 - 5,906.47 = 29,673,53

293.54 interest expense

780 interest expense

1,073.54 total interest