Question

To pay for an order of supplies, a firm signed a note on February 19, maturing on May 31. The face value of the note was $114,500, with interest of 7%. The firm made a partial payment of $31,000 on March 5 and a second partial payment of $25,900 on April 26. Using the United States Rule, find the amount due on the maturity date of the note and the amount of interest paid on the note, The amount due on the maturity date is $ (Round to the nearest cent.)

Answer 1

Calculation of interest based on the united states rules on 360 days as yearly days basis
Particulars	Repayment Date	Note Amount	borrowing date	Maturity date	Balance O/S	No of days	interest @ 7%	Maturity amount
Face value of the note		114500	19-02-2019	31-05-2019	114500	102	2,270.92	1,16,770.92
Particulars	Repayment Date	Principle Amount	borrowing date	Maturity date	Balance O/S	No of days	interest @ 7%	Revised principle with interest
First Partial repayment of the loan	05-03-2019	31000			83500	15	333.96	83,833.96
Second Partial repayment of the loan	26-04-2019	25900			57600	52	847.65	58,781.61
Interest on the balance amount payable after 2nd repayment	31-05-2019				57600	35	400.04	59,181.65
Final amount payable on maturity		57600					1,581.65	59,181.65

Total interest of the loan tenure if there is no partical repayment is USD 2270.9. However total interest payable is lower due to partial repayments and the final interest on the loan is usd 1581,65 only