Question

Q8: Bruce Wayne borrowed $14 300.00 for investment purposes on May 19, on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $1,300.00 on June 28, $1,450 on September 25, and $4,200.00 on November 15. How much is the final payment on December 31 if the rate of interest was 11.5% on May 19; 8.21% effective August 1; and 6.35% effective November 1? Use the declining balance method and show all calculations				CLR 9	L10 Obj. 3
			Interest	PRINCIPAL	Balance
Date		Payment		PORTION
May	19				-$14,300.00
June	28	$1,300.00
Sept	25	$1,450.00
NOV	15	$4,200.00
Dec	31
		Final Payment	Final Interest
Cell B	Cell B
	USE THIS TABLE TO CALCULATE Dates and INTEREST
		Time	time/365	R	INTEREST
2017-05-19	2017-06-28
2017-06-29	2017-07-31
2017-08-01	2017-09-25
		SECOND INTEREST PAYMENT
2017-09-26	2017-10-31
2017-11-01	2017-11-15
		THIRD INTEREST PAYMENT
2017-11-16	2017-12-31

Answer 1

	Date		Payment	Interest	PRINCIPAL	Balance
	May	19				($1,430,000)
	June	28	$1,300	$1,300	($16,722)	($1,446,722)	(1300-18022=-16722)
	Sept	25	$1,450	$1,450	($31,815)	($1,478,537)	(1450-33265=-31815)
	NOV	15	$4,200	$4,200	($11,631)	($1,490,168)	(4200-15831=-11631)
	Dec	31	$1,502,093	$11,925	$1,490,168
			Final Payment	Final Interest
		Time	time/365	R	INTEREST
	5/19/2017	6/28/2017	40/365	11.50%	$18,022	1430000*11.5%*(40/365)
	6/29/2017	7/31/2017	33/365	11.50%	$15,042	1446722*11.5%*(33/365)
	8/1/2017	9/25/2017	56/365	8.21%	$18,223	1446722*8.21%*
			SECOND INTEREST PAYMENT		$33,265
	9/26/2017	10/31/2017	36/365	8.21%	$11,973	1478537*8.21%*(36/365)
	11/1/2017	11/15/2017	15/365	6.35%	$3,858	1478537*6.35%*(15/365)
			THIRD INTEREST PAYMENT		$15,831
	11/16/2017	12/31/2017	46/365	6.35%	$11,925	1490168*6.35%*(46/365)
	FINAL PAYMENT ON DECEMBER 31			$1,502,093