Max Wholesaler borrowed $2,000 on a 10%, 120-day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an additional $630. Use ordinary interest

I want the answer of this question

Well, Max seems to have some interesting note-paying skills! Let's calculate the remaining balance on his loan using ordinary interest.

First, let's calculate the interest for the first 45 days:
Interest = Principal * Rate * Time
Interest = $2,000 * 10% * (45/365)
Interest = $24.65 (approximately)

Now, subtract the interest from the initial payment of $700:
Principal Payment = $700 - $24.65
Principal Payment = $675.35

After this payment, Max still owes $2,000 - $675.35 = $1324.65

Now, let's calculate the interest for the next 30 days:
Interest = $1324.65 * 10% * (30/365)
Interest = $10.89 (approximately)

Adding the interest to the second payment of $630:
Principal Payment = $630 - $10.89
Principal Payment = $619.11

After this payment, Max still owes $1324.65 - $619.11 = $705.54

So, the remaining balance on Max's loan after the two payments is $705.54. Max better keep clowning around because he still has a bit more to pay off!

To calculate the remaining balance on the note, we need to follow these steps:

Step 1: Calculate the interest for the initial period.
The interest can be calculated using the formula: Interest = Principal x Interest Rate x Time
Therefore, the interest for the initial period of 45 days can be calculated as:
Interest = $2,000 x 0.10 x (45/365)

Step 2: Subtract the payment made after 45 days from the total balance.
Remaining Balance = Total Balance - Payment Made
Total Balance = Principal + Interest
Total Balance = $2,000 + Interest (from Step 1)
Remaining Balance = (Principal + Interest) - Payment Made

Step 3: Calculate the interest for the second period.
The interest for the second period of 30 days can be calculated as:
Interest = Remaining Balance x Interest Rate x Time

Step 4: Subtract the payment made after 75 days from the remaining balance.
Remaining Balance = Remaining Balance - Payment Made

Step 5: Calculate the interest for the remaining period (post 75-day payment) using the remaining balance.

Step 6: Add up the interest for each period to get the total interest paid.

Step 7: Subtract the total interest paid from the initial principal to get the final balance.

Now, let's calculate each step of the process:

Step 1:
Interest = $2,000 x 0.10 x (45/365)
Interest = $24.66 (rounded to the nearest cent)

Step 2:
Total Balance = $2,000 + $24.66
Total Balance = $2,024.66 (rounded to the nearest cent)

Remaining Balance = $2,024.66 - $700
Remaining Balance = $1,324.66 (rounded to the nearest cent)

Step 3:
Interest = $1,324.66 x 0.10 x (30/365)
Interest = $10.84 (rounded to the nearest cent)

Step 4:
Remaining Balance = $1,324.66 - $630
Remaining Balance = $694.66 (rounded to the nearest cent)

Step 5:
Interest = $694.66 x 0.10 x (45/365)
Interest = $8.58 (rounded to the nearest cent)

Step 6:
Total Interest Paid = $24.66 + $10.84 + $8.58
Total Interest Paid = $44.08 (rounded to the nearest cent)

Step 7:
Final Balance = $2,000 - $44.08
Final Balance = $1,955.92 (rounded to the nearest cent)

Therefore, the final balance on the note after all the payments is $1,955.92.

for what?

Step 1: Calculate the interest due for the first 45 days of the loan using I=PRT. $2,000 x .10 x 45 = $25.00 interest 360 Step 2: Subtract the interest owed from the partial payment to find the amount reducing the principal. $700 – 25 = $675 Step 3: Subtract the amount reducing principal from the principal. $2,000 - 675 = $1,325 adjusted balance