Kit borrowed $15,500 at 11% ordinary interest for 120 days. After 70 days, she made a partial payment of $3,000. What is the final amount due on the loan?
. $13,027.57
Interest simple = 15500* .11*70/360
15500+ 15500* .11*70/360 - 3000 = ?
To find the final amount due on the loan, we need to calculate the interest on the remaining principal amount.
Step 1: Calculate the interest on the original loan amount for the entire duration:
Interest = Principal * Rate * Time
Interest = $15,500 * 11% * (120/365)
Interest = $527.67
Step 2: Calculate the interest on the remaining principal amount for the remaining duration:
Remaining Principal = Original Principal - Partial Payment
Remaining Principal = $15,500 - $3,000
Remaining Principal = $12,500
Interest on Remaining Principal = Remaining Principal * Rate * Time remaining
Interest on Remaining Principal = $12,500 * 11% * (50/365)
Interest on Remaining Principal = $225.34
Step 3: Calculate the final amount due:
Final Amount Due = Original Loan Amount + Interest on Original Loan Amount - Partial Payment + Interest on Remaining Principal
Final Amount Due = $15,500 + $527.67 - $3,000 + $225.34
Final Amount Due = $13,253.01
Therefore, the final amount due on the loan is $13,253.01.
To find the final amount due on the loan, we need to calculate the interest on the remaining loan amount after the partial payment and add it to the remaining loan amount.
First, let's calculate the remaining loan amount after the partial payment.
Remaining loan amount = Loan amount - Partial payment
Remaining loan amount = $15,500 - $3,000 = $12,500
Next, let's calculate the interest on the loan for the remaining period. Since the loan was for 120 days and the partial payment was made after 70 days, there are 50 days remaining.
Interest = (Principal amount) x (Interest rate) x (Time)
Interest = $12,500 x 11% x (50/360) (using ordinary interest formula with time in days)
= $12,500 x 0.11 x 0.1389
= $191.99 (rounded to the nearest cent)
Finally, we add the interest to the remaining loan amount to find the final amount due:
Final amount due = Remaining loan amount + Interest
Final amount due = $12,500 + $191.99
Final amount due = $12,691.99
Therefore, the final amount due on the loan is $12,691.99.