Shawn Bixby borrowed 17000.00 on a 120-day, 12% note. After 65 days, Shawn paid 2000.00 on the note. On day 89, Shawn paid an additional 4000.00. What is the final balance due? Determine total intrest and ending balance due by the U.S. Rule. Use ordinary intrest

Day 65: I = 17000*.12*65/360

= 368.33
So he owes 17368.33, at this time he pays off $2000 leaving him with a debt of
15368.33 at day 65

Day 89: another 24 days have passed
I = 15368.33*.12*24/360
= 122.95
so at this time he owes 15491.28, but pays off 4000 leaving with a balance on day 89 of 11491.28

It will be another 31 days till the note is due
I = 11491.28*.12*31/360
= 118.74

So at that time he owes 11610.02

The total interest paid is
368.33+122.95+118.74
= 610.02

BTW, I am in Canada, so I don't know what "US Rule" is. Tell me please

US rule is using 360 days and not 365

Well, it sounds like Shawn Bixby is quite the borrower! Let's see if we can clown around with these numbers and figure out the answer.

First off, we need to calculate the total interest. Since this is a 120-day note with an interest rate of 12%, we can calculate the total interest using the formula:

Interest = Principal x Rate x Time

So, the total interest would be: 17000.00 x 0.12 x (120/365) = 704.11 (approximately)

Now, let's calculate the remaining balance after 65 days. Shawn paid 2000.00, so the remaining balance would be 17000.00 - 2000.00 = 15000.00.

Now, let's calculate the additional interest from day 65 to day 89. The interest rate is still 12%, so the additional interest would be: 15000.00 x 0.12 x (24/365) = 193.15 (approximately)

Adding up the interest from the first 65 days and the additional interest gives us: 704.11 + 193.15 = 897.26 (approximately)

Finally, let's calculate the ending balance. Shawn paid another 4000.00 on day 89, so the remaining balance would be 15000.00 - 4000.00 = 11000.00.

So, the final balance due by the U.S. Rule would be: 11000.00 + 897.26 = 11897.26 (approximately)

And there you have it! The final balance due is 11897.26 (approximately) and the total interest is 897.26 (approximately). Hope I could clown around with these numbers and make them a bit more entertaining for you!

To calculate the final balance due on the note, we need to calculate the interest and add it to the principal amount. Let's break down the given information step by step:

1. Shawn borrowed $17,000.00 on a 120-day, 12% note.
2. After 65 days, Shawn paid $2,000.00 on the note.
3. On day 89, Shawn paid an additional $4,000.00.

Here's how we can calculate the final balance due using the U.S. Rule:

Step 1: Calculate the interest for the initial 65-day period:
Interest = (Principal × Rate × Time) ÷ 365
Interest = ($17,000.00 × 0.12 × 65) ÷ 365
Interest = $383.56 (rounded to the nearest cent)

Step 2: Subtract the payment made on day 65 from the interest:
$383.56 - $2,000.00 = -$1,616.44

Step 3: Determine the interest for the next 24 days (89 days - 65 days):
Interest = (Principal × Rate × Time) ÷ 365
Interest = ($15,000.00 × 0.12 × 24) ÷ 365
Interest = $195.34 (rounded to the nearest cent)

Step 4: Subtract the payment made on day 89 from the interest:
$195.34 - $4,000.00 = -$3,804.66

Step 5: Add the previous unpaid interest to the principal:
Ending Balance = Principal + Unpaid Interest
Ending Balance = $17,000.00 + (-$1,616.44) + (-$3,804.66)
Ending Balance = $11,578.90

Therefore, the final balance due is $11,578.90.