Question

I borrowed $10,000 on a 120-day note that required ordinary interest at 12.19% I paid $5,000 on the note on the 60th day how much interest did I save by making the partial payment

Answer 1

P = Po + Po*r*t
P = 10000 + 10000*(0.1219/360)*60
P = 10000 + 203.17 = $10,203.17 On 60th
day.

I = (10,203.17-5000)*(0.1219/360)*60 =
$105.71 For last 60 days.

It = 203.17 + 105.71 = $308.88 = Total
int. paid.

I = 10000*(0.1219/360)*120 = $406.33 For
120 days.

406.33 - 308.88 = $97.45 = Int. saved.