Malinda Levi borrows $12,000 on a 9.5% , 90 day note. On the 30th day, Malinda pays $4,000 on the note. If ordinary interest is applied, what is Malinda’s adjusted principal after the partial payment? What is the adjusted balance due at maturity?

Answer 1

P = Po + Po*r*t - 4,000
P = 12000 + 12000*(0.095/360)*30 - 4000
P = 12000 + 95 - 4000 = $8,095

Bal.=8,095+8095*(0.095/360)*60=$8,223.17
Due at maturity.