Jones of Boston borrowed $40,000, 90 day, 10% note. After 60 days Jones made an initial payment of $6,000. Assuming the U.S. Rule what is adjusted balance after the first payment. Use 360 days.

Question

anonymous · Answer

Don't you have a textbook you can look at? I'd help you but I didn't take accounting past 11th grade, so I have no idea what that question is talking about.

anonymous · Answer

no our professior had us order the wrong book. so we go without the book

dumbcow · Answer

not sure about US rule, but since its a 10% APR note for 90 days, thats an effective rate of 2.5%

2.5% of 40,000 = 1000

41,000 - 6,000 = 35,000

anonymous · Answer

so it wud be 35,000?

dumbcow · Answer

i believe so

anonymous · Answer

oh okay i get it:D thank you

dumbcow · Answer

here is my reference http://en.wikipedia.org/wiki/Treasury_note#Treasury_bill look at discount% equation, i believe that models this situation