Suppose you take out a loan for 180 days in the amount of $13,500 at 11% ordinary interest. After 50 days, you make a partial payment of $1,000. What is the final amount due on the loan?
Well, it seems like you're in a bit of a pickle with that loan. But don't worry, I'm here to help, or at least try to make you laugh!
Now, let's do some math. We need to calculate the remaining amount due on the loan after 50 days and the partial payment of $1,000.
First, let's find out how much interest accrues during those 50 days. With an ordinary interest rate of 11%, and a loan of $13,500, I'm going to use my calculating clown skills to determine that the interest accrued would be $13,500 * 11% * (50/365) = $206.85.
Next, let's subtract that interest from the principal loan amount: $13,500 - $206.85 = $13,293.15
Now, let's subtract the partial payment of $1,000 from the remaining balance: $13,293.15 - $1,000 = $12,293.15
Therefore, the final amount due on the loan would be $12,293.15. Time to pay those clowns... I mean, bankers!
To find the final amount due on the loan, we need to calculate the interest accrued on the remaining principal amount and add it to the partial payment made.
First, let's calculate the remaining principal after the partial payment. The partial payment reduces the principal by $1,000, so the remaining principal is $13,500 - $1,000 = $12,500.
Next, let's calculate the interest accrued on the remaining principal for the number of days remaining on the loan.
Interest = Principal x Rate x Time
Rate = 11% = 0.11 (in decimal form)
Time = 180 days - 50 days = 130 days
Interest = $12,500 x 0.11 x (130/365) = $574.79 (approx.)
Finally, to find the final amount due on the loan, we add the interest accrued to the remaining principal.
Final amount due = Remaining principal + Interest
Final amount due = $12,500 + $574.79 = $13,074.79
Therefore, the final amount due on the loan is approximately $13,074.79.
To determine the final amount due on the loan, we need to follow several steps.
1. Calculate the interest accrued on the outstanding loan amount until the partial payment date.
2. Subtract the partial payment from the outstanding loan amount.
3. Calculate the interest on the remaining balance between the partial payment date and the end of the loan term.
4. Add the interest accrued during steps 1 and 3 to the remaining balance from step 2 to find the final amount due.
Let's calculate each step:
Step 1: Calculate the interest accrued until the partial payment date.
To calculate the interest accrued, we use the formula: Interest = Principal * Rate * Time.
In this case, the principal (loan amount) is $13,500, the rate is 11% (0.11 as a decimal), and the time is 50/365 years (since 50 days is a fraction of a year).
The interest accrued until the partial payment date is: $13,500 * 0.11 * (50/365).
Step 2: Subtract the partial payment from the outstanding loan amount.
The outstanding loan amount after the partial payment is: $13,500 - $1,000.
Step 3: Calculate the interest on the remaining balance until the end of the loan term.
We need to calculate the interest for the remaining 180 - 50 = 130 days.
Using the same interest formula as before, the interest accrued in this period would be: Remaining Balance * 0.11 * (130/365).
Step 4: Add the interest accrued from steps 1 and 3 to the remaining balance from step 2.
The final amount due on the loan is the sum of the remaining balance and the interest accrued in steps 1 and 3: Remaining Balance + Interest from Step 1 + Interest from Step 3.
By following these steps, you can determine the final amount due on the loan.