Adela borrowed $10,500 at 12% ordinary interest for 170 days. After 40 days, she made a partial payment of $3,000. After another 80 days, Adela made a second partial payment of $2,000. What is the final amount due on the loan?
P = Po + Po*r*T.
P1 = 10,500 + 10,500*(0.12/360)*40 - 3000 = 10,640 - 3000 = $7,640.
P2 = 7,640 + 7640*(0.12/360)*80 = 7843.73 - 2000 = $5843.73. = Bal.
after 120 days.
P3 = 5843.73 + 5843.73*(0.12/360)*50 = Final amt. due.
To find the final amount due on the loan, we need to calculate the interest on the remaining principal balance after each partial payment.
First, let's calculate the interest for the initial period before the first partial payment. Adela borrowed $10,500 at an interest rate of 12% per annum (annual interest rate). To find the interest for 170 days, we can use the formula:
Interest = Principal x Rate x Time
Principal = $10,500
Rate = 12% per annum = 12/100 = 0.12
Time = 170/365 (as it is given in days and we need to convert it to years)
So, the interest for the initial period is:
Interest = $10,500 x 0.12 x (170/365)
Interest = $513.15 (rounded to two decimal places)
After 40 days, Adela made a partial payment of $3,000. Therefore, the principal balance after the first payment is:
Principal balance = $10,500 - $3,000
Principal balance = $7,500
Now, let's calculate the interest for the second period before the second partial payment. The principal balance is $7,500, and the time is 80 days.
Interest = $7,500 x 0.12 x (80/365)
Interest = $164.38 (rounded to two decimal places)
The principal balance after the second payment is:
Principal balance = $7,500 - $2,000
Principal balance = $5,500
Finally, to calculate the final amount due on the loan, we need to sum up the remaining principal balance and the interest for the second period:
Final amount due = Principal balance + Interest for the second period
Final amount due = $5,500 + $164.38
Final amount due = $5,664.38
Therefore, the final amount due on the loan is $5,664.38.