Question

Bill Brody borrowed $12,500 on an 11% 120-day note. After 65 days, bill paid $500 toward the note. On day 89, bill paid an additional $4,500. What is the final balance due? Work out the total interest and ending balance due by the U.S. Rule.

Answer 1

Ans.	Payments	Days hold	Interest	Principal Repayment
	500	65	10	490
	4500	89	121	4,379
	Total principal amount balance =			$12,500-($490+$4,379)
	=			$                           7,630
	Interest amount =		($7,630 x 11% x 120)/365
	=		$276