Jim Murphy borrowed $30,000 on 120-day, fourteen percent note. Jim paid $5,000 toward the note on day 95. On day 105 he paid an additional $6,000. Using the U.S. Rule, Jim's adjusted balance after the first payment is: (Assume a 360 - day year.)
$25,000
$28,891.67
$1,108.33
$26,108.33
None of these

Question

Jim Murphy borrowed $30,000 on 120-day, fourteen percent note. Jim paid $5,000 toward the note on day 95. On day 105 he paid an additional $6,000. Using the U.S. Rule, Jim's adjusted balance after the first payment is: (Assume a 360 - day year.)
	 $25,000
	 $28,891.67
	 $1,108.33
	 $26,108.33
	 None of these

tkhunny · Answer

I = Prt

P = 30000
r = 0.14
t = 95 days

P + I - 5000