Adela borrowed $10,500 at 12% ordinary interest for 170 days. After 40 days, she made a partial payment of $3,000. After another 80 days, Adela made a second partial payment of $2,000. What is the final amount due on the loan?

Answer 1

P = Po + Po*r*T.
P1 = 10,500 + 10,500*(0.12/360)*40 - 3000 = 10,640 - 3000 = $7,640.
P2 = 7,640 + 7640*(0.12/360)*80 = 7843.73 - 2000 = $5843.73. = Bal.
after 120 days.

P3 = 5843.73 + 5843.73*(0.12/360)*50 = Final amt. due.