Question

2)On March 5th, Brandon borrowed $6200 to pay for home repairs. The length of the loan is 180 days and has an interest rate of 8%. He makes a partial payment of $1200 on May 27th and a payment of $3200 on July 23rd. a. Find the balance of the loan May 27th (3 points)
b. Find the balance on July 23 (3 points)
c. Find the date of maturity and the amount due on the date of maturity? (3 points)

Answer 1

	Date	Principal	Interest	Loan outstanding
Loan amount	5-May			6,200.00
Partial repayment of $ 1,200	27-May	1,168.31	31.69	5,031.69
( Interest for 23 days = 6,200 x 8% x 23/360 = 31.69)
Partial repayment of $ 3,200	23-Jul	3,136.27	63.73	1,895.42
( Interest for 57 days = 5,031.69 x 8% x 57/360 = 63.73)
Maturity ( 180 - 57 - 23 = 100 days )	31-Oct	1,895.42	42.12	-
( Interest for 100 days = 1,895.42 x 8% x 100/360 = 42.12)
Amount due at the time of maturity = $ 1,895.42 + $ 42.12 = $ 1,937.54