Myerson borrowed $8,500 at 9% ordinary interest for 200 days. After 120 days, he made a partial payment of $4,000. What is the final amount due on the loan?

Answer 1

interest due at the end of 120 days
= 8500(120/365)(.09) = 251.51

so of his $4000 payment, $3748.49 will go towards reducing the debt.
so balance owing = 8500 - 3748.49
= 4751.51

interest for the remaining 80 days
= 4751.51(.09)(80/365) =93.73

total owing at the end = 4751.51+93.73
= $4845.23

Answer 2

But shouldn't ordinary interest be x days out of 360 and exact interest be x days out of 365?

My calculations led me to $4,850.10 as the remaining balance after the payment of $4,000.

MV (120 days)
= $8,500(1+ 9% x 120/360)
= $8,755
= $8,755 - $4,000
= $4,755

MV (80 days)
= $4,755 (1 + 9% x 80/360)
= $4,850.10

Answer 3

7837

Answer 4

Pls tell where $3789 comes from this answer