Christina Hercher borrowed $50,000 on a 90-day 8% note. Christina paid $3,000 toward the note on day 40. On day 60 she paid an additional $4,000. Using the U.S. Rule, Christina's adjusted balance after the first payment is:

Question

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Using the U.S. Rule, we need to find the adjusted balance after each payment is made.

After the first payment of $3,000 on day 40, there are 50 days left until the end of the 90-day note. We can calculate the interest on the remaining balance for those 50 days:

$47,000 (remaining balance) * 0.08 (interest rate) * 50/360 = $653.33

So the adjusted balance after the first payment is:

$50,000 (original balance) - $3,000 (first payment) + $653.33 (interest) = $47,653.33

After the second payment of $4,000 on day 60, there are 30 days left until the end of the 90-day note. We can calculate the interest on the remaining balance for those 30 days:

$43,653.33 (remaining balance) * 0.08 (interest rate) * 30/360 = $289.22

So the adjusted balance after the second payment is:

$47,653.33 (adjusted balance after first payment) - $4,000 (second payment) + $289.22 (interest) = $44,942.55

Therefore, the answer is C: $47,444.44 is the adjusted balance after the first payment.

Christina Hercher Borrowed $50,000 on a 90-Day 8% Note