Christina Hercher borrowed $50,000 on a 90 day, eight percent note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is: (Points : 1)

Question

Christina Hercher borrowed $50,000 on a 90 day, eight percent note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is: (Points : 1)
       $1,008.89
       $48,008.89
       $47,444.44
       $44,744.44
       None of these

Henry · Accepted Answer

P = Po + Po*r*t. r = (8%/360)/100% = 0.00022222 = Daily % rate. P=50000 + 50000*0.0002222*40=$50,444.44 Bal. = 50444.44-3000 = $47,444.44