Question

Given Principal: $12,000, 10, 240 days Partial payments: On 100th day, $4,200 On 180th day, $2,600 a. Use the U.S. Rule to solve for total interest cost (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Answer is complete but not entirely correct. Total interest cost 593.32 b. Use the U.S. Rule to solve for principal balances. (Use 360 days a year. Do not round intermediate calculations. Round your answers to the nearest cent.) Answer is complete but not entirely correct On 100th day On 180th day Balance after the payment 8,133.34 5,642.08x c. Use the U.S. Rule to solve for final payment. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Final payment

Answer 1

Interest for 100 days = 12,000 * 10%* 100/360 = 333.34
Total amount outstanding = 12,000 + 333.34 = 12,333.34
Payment made on 100th day = 4,200
Balance outstanding = 12,333.34 - 4,200 = $8,133.34
Interest for 80 days = $8,133.34 * 10%* 80/360 = 180.7409
Total amount outstanding = 8,133.34 + 180.74 = 8,314.08
Payment made on 180th day = 2,600
Total amount outstanding = 8,314.08 - 2,600 = 5,714.08
Interst for 60 days = 5,714.08 * 10% * 60/360 = 95.23
Final balance outstanding = 5,714.08 + 95.23 = 5,809.31

1. Total interest cost = 333.34 + 180.74 + 95.23 = 609.31

2.
Balance after the payment:
on 100th day = 8,133.34
on 180th day = 5,714.08

3.
Final payment = 5,809.31 or 5,809

Answer 2

Given Principal: $10,000, 8%, 240 days 

Partial payments: On 100th day, $4,000

On 180th day, $2,000

Use the U S Rule to solve for total Interest costs, balances, and final payments (use ordinary interest).