Question

Principal - 6000
Rate - 5%
Effective Date - May 15
Maturity Date - November 1
Partial Payment Amount - $1500
Partial Payment Date -August 15

Also Answer the following questions:
1. NUMBER OF DAYS BETWEEN EFFECTIVE DATE AND PARTIAL PAYMENT =
2. INTEREST ON PARTIAL PAYMENT DATE = PRINCIPAL X RATE X (NO. OF DAYS IN #1)/360 =
3. PRINCIPAL PAID ON PARTIAL PAYMENT DATE = PARTIAL PAYMENT - INTEREST PAID =
4.NEW PRINCIPAL = ORIGINAL PRINCIPAL - AMOUNT PAID IN #3 =
5.NUMBER OF DAYS BETWEEN PARTIAL PAYMENT DATE AND MATURITY DATE =
6. INTEREST IN MATURITY DATE = NEW PRINCIPAL X RATE X (NO. OF DAYS IN #5) /360 =
7. BALANCE DUE ON MATURITY DATE = NEW BALANCE + INTEREST ON MATURITY DATE =

Answer 1

Which specific part of this assignment do you need help with? Please tell us your thinking and figures on this and we'll try to help you.

Answer 2

I am sorry I did not paste the full question. Here it is. I need help in all as I am not able to understand this

Thanks

Use the United States Rule and/or Banker’s Rule to determine the balance due on the note at the date of maturity. (The effective date is the date the note was written.)

Principal - 6000
Rate - 5%
Effective Date - May 15
Maturity Date - November 1
Partial Payment Amount - $1500
Partial Payment Date -August 15

Also Answer the following questions:
1. NUMBER OF DAYS BETWEEN EFFECTIVE DATE AND PARTIAL PAYMENT =
2. INTEREST ON PARTIAL PAYMENT DATE = PRINCIPAL X RATE X (NO. OF DAYS IN #1)/360 =
3. PRINCIPAL PAID ON PARTIAL PAYMENT DATE = PARTIAL PAYMENT - INTEREST PAID =
4.NEW PRINCIPAL = ORIGINAL PRINCIPAL - AMOUNT PAID IN #3 =
5.NUMBER OF DAYS BETWEEN PARTIAL PAYMENT DATE AND MATURITY DATE =
6. INTEREST IN MATURITY DATE = NEW PRINCIPAL X RATE X (NO. OF DAYS IN #5) /360 =
7. BALANCE DUE ON MATURITY DATE = NEW BALANCE + INTEREST ON MATURITY DATE =

Answer 3

1. Days between effective date and partial payment?

<u>How many days are there between May 15 and August 15?</u>

2. Interest on partial payment date?
3. Principal paid?

<u>You have the formulas. Just plug in the numbers.</u>

This gives you a start. We'll be glad to check your answers.

Answer 4

Can you please check the answer

1. 91 Days(I didn't include May 15 and August 15, Is this correct)

2. 6000*0.05*91/360 = 75.83

3. 1500 - 75.83 = 1424.17

4. 6000- 1424.17 = 4575.83

5. 77 days (again didn't include Aug15 Nov 1)

6. 4575.83*0.05*77/360 = 48.93

7. 4575.83+48.93 = 4624.76

Answer 5

Yes. Your answers are all correct. :-)

Answer 6

Great Thanks a lot..

Answer 7

You're very welcome. :-)