on march 8, you sign a $4000 note with simple interest 10% for 240 days. You make partial payments of $1300 on May 26 and $2300 on july 31. How much will you owe on the date of maturity (November 3)?
Please show work!!!
First calculate the number of days between March 8 and May 26. 24 days in March, 30 days in April, and 26 days in May. Add those together=80 days.
4000(1+.10)^(80/365)= 4084.44. This is how much you owe on May 26, before the $1300 payment.
Then subtract 4084.44-1300. This is your new balance. 2784.44
Now calculate the days between May 26 and July 31. 4 days in May, 30 in June, 31 in July. This is 65 days.
2784.44(1+.10)^(65/365)=2832.10 This your balance on July 31st before making payment. Now subtract 2300. 2832.10-2300=532.10 Now calculate the number of days between July 31st and November 3rd=95 days.
532.10(1+.10)^(95/365)=545.46. This is how much you owe on November 3rd.
545.46 is not one of the choices that i have to choose from. the choices are 553.11, 555.05, 544.98, and 557.88
sorry. you could try changing the 80 to 79 in the first part. I was debating with myself, which one to use.
Simple interest
10% = 0.1 /365 = 0.000274 daily interest
3/8 to 5/26 = 79 days
79 * 0.000274 = 0.021646 (79 day interest rate) * $4000 = $86.58 interest this period
5/27 to 7/31 = 65 days
65 * 0.000274 = 0.01781 (65 day interest rate) * $2700 ($4000 - 1300) = 48.08 interest this period
8/1 to 11/3 = 94 day
94 * 0.000274 = 0.025757 (94 day interest rate) * $400 $2700 - 2300) = $10.30 interest this period
Payment on 11/03 $400 + interest =
$400.00 + 86.58 + 48.08 + 10.30 = 544.96
convert the numeral to a numeral in base ten
43,163ten
To find out the amount owed on the date of maturity (November 3), we need to calculate the interest accrued on the note and deduct the partial payments made.
First, let's calculate the interest accrued. We can use the simple interest formula:
Interest = Principal * Rate * Time
Where:
Principal = $4000 (the initial amount of the note)
Rate = 10% or 0.10 (expressed as a decimal)
Time = 240 days / 365 days (we need to convert it to years)
Time = 240 days / 365 days ~= 0.6575 years
Interest = $4000 * 0.10 * 0.6575
Interest = $262.20
Therefore, the interest accrued on the note up until the date of maturity is $262.20.
Now let's deduct the partial payments made:
Partial Payment 1: $1300
Partial Payment 2: $2300
Total Partial Payments = $1300 + $2300
Total Partial Payments = $3600
Therefore, the total partial payments made are $3600.
To calculate the amount owed on the date of maturity, we subtract the total partial payments from the initial amount of the note, and then add the interest accrued:
Amount Owed = Principal - Total Partial Payments + Interest
Amount Owed = $4000 - $3600 + $262.20
Amount Owed = $662.20
Therefore, on the date of maturity (November 3), you will owe $662.20.