Answer:
total balance due at the end of 1 year is $769.75
Step-by-step explanation:
Given data
loan amount = $1000
time period = 1 year
return = $300
rate = 9%
to find out
balance due at the end of one year
solution
we know in question $300 return after 3 month so we first calculate interest of $1000 for 3 month and than we after 3 month remaining 9 month we calculate interest for $700
interest for first 3 month = ( principal × rate × time ) / 100 .............1
here time is 3 month so = 3/12 will take and rate 9 % and principal $1000
put all these value in equation 1 we get interest for first 3 month
interest for first 3 month = ( principal × rate × time ) / 100
interest for first 3 month = ( 1000 × 9 × 3/12 ) / 100
interest for first 3 month = $22.5
now we calculate interest for remaining 9 months i.e.
interest for next 9 months = ( principal × rate × time ) / 100
here principal will be $700 because we pay $300 already
interest for next 9 months = ( 700 × 9 × 9/12 ) / 100
interest for next 9 months = $47.25
now we combine both interest that will be
interest for first 3 months +interest for next 9 months = interest of 1 year
interest of 1 year = $22.5 + $47.25
interest of 1 year = $69.75
so amount will be paid after 1 year will be loan amount + interest
amount will be paid after 1 year = 1000 + 69.75
amount will be paid after 1 year is $1069.75
so total balance due at the end of 1 year = amount will be paid after 1 year - amount paid already
total balance due at the end of 1 year = $1069.75 - $300
total balance due at the end of 1 year is $769.75
