Question

I need step wise hand written solution with formula as I have answer of following question:-

The Provincial Bank lent $20 000 to the owner of the Purple Pelican on April 1, 2012, for commercial improvements. The loan was secured by a demand note subject to a variable rate of interest. This rate was 7% on April 1. The rate of interest was raised to 9% effective August 1 and reduced to 8% effective November 1. Partial payments, applied to the loan by the declining balance method, were made as follows: June 10, $1000; September 20, $400; November 15, $1200. How much interest is due to the Provincial Bank on December 31?

Answer =$185.08

Answer 1

					Amount $		month	days
							april	29
	loan Amount $20000				20,000.00		may	31
	interest till 10th june   (20000 x 7% x 70 / 365)				268.49		june	10
	total ( principal + interest)				20,268.49		total till 10 june	70
Jun-10	Repayment				1,000.00
	Balance as on 10th June				19,268.49		from june 11 to july 31st
							June	20
	interest till july 31st         (19268.49 x 7% x 51 / 365)				188.46		july	31
	Interest till 20 th Sept          (19268.49 x 9% x 51 / 365)				242.31			51
Sep-20	Repayment				400.00		Aug 1 to 20 Sept
	Balance as on 20th Sept				19,299.26		August	31
							till 20 th Sept	20
	interest till October 31st         (19299.26 x 9% x 41 / 365)				195.11			51
	Interest till nov 15th         (19299.26 x 8% x 15 / 365)				63.45
Nov-15	Repayment				1,200.00		sept 21st to oct 31st
	Balance as on 15th Nov				18,357.82		September	10
							October	31
	Interest till Nov 30th          (18357.82 x 8% x 15 / 365)				60.35			41
	interset in December 31       (18357.82 x 8% x 15 / 365)				124.73
	Interest in November balance period + December				185.08		Till nov 15th	15
							from Nov 15th till Nov 30th	15