Andres Michael bought a new boat. He took out a loan for $23,980 at 3.75% interest for 4 years. He made a $4,470 partial payment at 4 months and another partial payment of $3,180 at 9 months. How much is due at maturity?

Answer 1

To determine the due amount at maturity, we should follow these steps:

1. Calculate the interest for the loan by multiplying the principal amount with the interest and years: interest = principal * interest rate * years
2. Calculate the remaining principal amount after all partial payments.
3. Add the remaining principal amount and the interest.

Now, let's start to solve the problem step by step:

1. interest = 23980 * 0.0375 * 4 = $3597
2. remaining_principal = 23980 - 4470 - 3180 = $16330
3. due_at_maturity = remaining_principal + interest = $16330 + $3597 = $19927

There will be $19,927 due at maturity.