Question

Partial payments are made on the dates indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year. Effective Partial Payment Maturity Principal Date Amount Date Date $1900 19% Sept. 1 $500 Oct. 1 Dec. 1 $500 Nov. 1 Click the icon to view a table of the number of the day of the year for each date. 1. The balance due on the note at the date of maturity is $ (Round to the nearest cent as needed.)

Answer 1

effective date on note 1 september

note amount=1900$

partial payments are made on 1 st october $500 and 1st november $500

as per united state rules,

when partial payment is received first of all we should adjust against interest amount later it should be adjusted against principle

similarly by applying the above rule

interest due on 1 st october is 1900$*19%*30days/365days=29.671$

remaining amount after adjusting against interest =500$-29.671$=470.329$

therefore

principal amount due on 1 st october is principal amount-remaining amount after adjusting against interest

1900$-470.329=1429.671$

interest due on 1st october =1429.671*19%*31/365=23.071$

remaining amount after adjusting against interest =500$-23.071$=476.929

principal amount due on 1 st november is principal amount-remaining amount after adjusting against interest

1429.671$-476.929$=952.724$

the total amount(principal+interest) due on 1st december=952.724+952.724*19%*30/365=967.6022