find the adjusted balance due at maturaty for 90 day note of $12,000 at 13.1% ordinary interest if a partial payment of $60,000is made o\n the 60th day of the loan
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find the adjusted balance due at maturaty for 90 day note of $12,000 at 13.1% ordinary interest if a partial payment of $6,000is made o\n the 60th day of the loan
To calculate the adjusted balance due at maturity for a 90-day note with a partial payment made on the 60th day, you need to follow these steps:
Step 1: Calculate the interest on the original principal amount for the 60 days before the partial payment.
First, we calculate the interest on the original principal amount for 60 days:
Interest = Principal * Rate * Time
Principal = $12,000
Rate = 13.1% = 0.131 (in decimal form)
Time = 60/360 (assuming a 360-day year)
Interest = $12,000 * 0.131 * (60/360) = $130
Step 2: Subtract the partial payment made on the 60th day from the original principal amount.
Partial Payment = $60,000
Adjusted Principal = Principal - Partial Payment = $12,000 - $60,000 = -$48,000
Step 3: Calculate the interest on the adjusted principal amount for the remaining 30 days.
Now, we will calculate the interest on the adjusted principal amount for the remaining 30 days:
Interest = Adjusted Principal * Rate * Time
Adjusted Principal = -$48,000
Rate = 13.1% = 0.131 (in decimal form)
Time = 30/360 (assuming a 360-day year)
Interest = -$48,000 * 0.131 * (30/360) = -$196
Step 4: Add the interest from step 1 and step 3 to get the adjusted balance due at maturity.
Adjusted Balance Due at Maturity = Adjusted Principal + Interest
Adjusted Balance Due at Maturity = -$48,000 + $130 + (-$196) = -$48,066
Therefore, the adjusted balance due at maturity for the 90-day note, considering the partial payment on the 60th day, is -$48,066.