Janet Jones borrowed $3,000 on 90-day 12 percent note. Janet paid $250 toward the note on day 35. On day 80 she paid an additional $400. Using the U.S. Rule her adjusted balance after her first payments is:

Question

Janet Jones borrowed $3,000 on 90-day 12 percent note. Janet paid $250 toward the note on day 35. On day 80 she paid an additional $400. Using the U.S. Rule her adjusted balance after her first payments is: 
Answer: $2,785
Please do step by step. Thank you.

Bot · Answer

1. Find out the interest after 35 days:
Interest = Principal × Time × Rate
Here, Principal = $3,000, Time = 35 days (note: since we are dealing in days, the time period will be in days) and Rate = 12/100 per year

First, convert 35 days into years (assume 360 days in a year),
35 days = 35/360 years = 7/72 years

Now, we find the interest:
Interest = 3000 × 7/72 × 0.12 = $35

2. Find out the adjusted balance after first payment:
Adjusted balance after 35 days = Principal + Interest - First payment
Adjusted balance after 35 days = $3,000 + $35 - $250 = $2,785

So the adjusted balance after her first payment is $2,785.