Question

Max Wholesaler borrowed $2,000 on a 10%, 120-day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an additional $630. Use ordinary interest

Answer 1

for what?

Answer 2

I want the answer of this question

Answer 3

Step 1: Calculate the interest due for the first 45 days of the loan using I=PRT. $2,000 x .10 x 45 = $25.00 interest 360 Step 2: Subtract the interest owed from the partial payment to find the amount reducing the principal. $700 – 25 = $675 Step 3: Subtract the amount reducing principal from the principal. $2,000 - 675 = $1,325 adjusted balance