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
a. $25,000
b.$28,891.67
c.$1,108.33
d.$26,108.33
e.None of these