Shawn Bixby borrowed $24000 on a 210-day, 12% note. after 85 days, Shawn paid $2700 on...

Shawn Bixby borrowed $24000 on a 210-day, 12% note. after 85 days, Shawn paid $2700 on the note. on day 130, shawn paid an additional $4700. use ordinary interest

Expert Solution

Borrowings	$ 24,000.00
Add: Interest before first repayment (2400012%85/360)	$ 680.00
Less: first payment	$ (2,700.00)
Liability after first payment	$ 21,980.00

Second payment: After 45 [130-85=45] Days from first payment
Liability after first payment	$ 21,980.00
Add: Interest before second repayment (2198012%45/360)	$ 329.70
Less: second payment	$ (4,700.00)
Liability after second payment	$ 17,609.70

Remaining day = 210-130=80
Liability after second payment	$ 17,609.70
Interest accrued (second payment to maturity date) (17609.7012%80/360)	$ 469.59
Ending balance due on 210 day	$ 18,079.29

Interest before first repayment	$ 680.00
Interest before second repayment	$ 329.70
Interest accrued (second payment to maturity date)	$ 469.59
Total interest	$ 1,479.29

ekkarill92 answered 1 year ago

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