Alicia borrowed $8,500 at 6% ordinary interest for 180 days. After 40 days, she made a partial payment of $2,000. After another 70 days, Alicia made a second partial payment of $2,000. What is the final amount due on the loan?

Question

Alicia borrowed $8,500 at 6% ordinary interest for 180 days.  After 40 days, she made a partial payment of $2,000.  After another 70 days, Alicia made a second partial payment of $2,000.  What is the final amount due on the loan?

Henry · Accepted Answer

P = Po + Po*r*t
P = 8,500 + 8500*(0.06/360)*40 - 2000 = $8556.67 - 2000 = $6556.67 After 40 days.

P = 6556.67 + 6556.67*(0.06/360)*70 - 2000 = 6633.16 - 2000 = 4633.16 After 70
days.

P = 4633.16 + 4633.16*(.0/360)*(180-110)= $4687.21 After 180 days.