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Temka [501]
3 years ago
14

On May 1, you sign a $1000 note with simple interest of 8.5% and a maturity date of December 19. You make partial

Mathematics
1 answer:
Lelu [443]3 years ago
8 0

Answer:

The amount to be repaid is $379.26.

Step-by-step explanation:

Period of note from May 1 to December 19 = 233 days

Amount of note or principal = $1,000

Simple interest rate = 8.5%

Maturity date = December 19

Repayments:

June 2 = $475

Nov. 4 =  $200

Total paid $675

Simple interest = $54.26 ($1,000 * 8.5% * 233/365)

Total amount to be repaid = $1,054.26

Total amount repaid =               675.00

Balance to be paid on maturity $379.26

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