Christina Hercher borrowed $50,000 on a 90 day, eight percent note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is: (Points : 1)
$1,008.89
$48,008.89
$47,444.44
$44,744.44
None of these
To calculate Christina's adjusted balance using the U.S. Rule, you need to follow a few steps:
Step 1: Calculate the interest owed at the end of the 90-day period.
Interest = Principal * Interest Rate * Time
Interest = $50,000 * 8% * (90/360) (since 90 days is equivalent to 1/4 of a year)
Interest = $1,000
Step 2: Subtract the payments made from the principal.
Adjusted Principal = Principal - Payment 1 - Payment 2
Adjusted Principal = $50,000 - $3,000 - $4,000
Adjusted Principal = $43,000
Step 3: Add the interest owed to the adjusted principal.
Adjusted Balance = Adjusted Principal + Interest
Adjusted Balance = $43,000 + $1,000
Adjusted Balance = $44,000
Therefore, the correct answer is:
$44,000
Note that none of the options provided matches the correct answer, so you can choose "None of these" as the correct option.