OBX Mufflers accepted a five-month, 7.5% interest, $2,400 note from ABD Motors on June 1, 2008. The entire balance is payable at the note's maturity. What will be the total payment on October 31, 2008?
Total payment= $
To calculate the total payment on October 31, 2008, we need to consider the principal amount, the interest rate, and the duration of the loan.
Here's how to calculate the total payment:
1. Calculate the interest for the five-month period:
Interest = Principal * Interest rate * Time
In this case, the principal amount is $2,400, the interest rate is 7.5%, and the time is five months.
Interest = $2,400 * (7.5/100) * (5/12) = $To calculate the total payment on October 31, 2008, we need to consider the principal amount, the interest rate, and the duration of the loan.
Here's how to calculate the total payment:
1. Calculate the interest for the five-month period:
Interest = Principal * Interest rate * Time
In this case, the principal amount is $2,400, the interest rate is 7.5%, and the time is five months.
Interest = $2,400 * (7.5/100) * (5/12) = $62.50
2. Add the interest to the principal:
Total payment = Principal + Interest
Total payment = $2,400 + $62.50 = $2,462.50
Therefore, the total payment on October 31, 2008, will be $2,462.50.