A woman borrows $1,000 on 1 January 2002 at 16% per annum simple interest. She pays $350 on 12 April 2002, $200 on 10 August 2002 and $400 on 3 October 2002. What is the balance due on 1 January 2003?

Answer 1

P = Po + Po*r*t = 1000 + 1000*0.16*1 = $1,160,
1160 - (350 + 200 + 400) = $210 Due on 1 Jan. 2003.