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: ??
$1,008.89
$48,008.89
$47,444.44
$44,744.44
None of these

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: ??
       $1,008.89
       $48,008.89
       $47,444.44
       $44,744.44
       None of these

apoorvk · Answer

okay does the US rule mean rules of compound interest? and is the 8% per annum?

anonymous · Answer

The us rule allows the borrower to recieve proper interest credits. this rule states that any partial loan payment first covers and interest that has built up. the remainder of the partial payment reduces the loan principal. courts or legal proceedings generally use the US rule. the supreme court originated the US rule in the case if story v. livingston