On February 1, T borrowed $20,000.Of this amount, $9,000 is used to invest in a business on February 10 and $11,000 is used on February 15 to buy a Rolex watch.On April 30, he repaid $15,000.Of the repayment amount, how much reduces the portion allocated to investment?
A)$4,000
B)$5,000
C)$9,000
D)$11,000
E)None of the above amounts

Question

Quizplus · Accepted Answer

The repayment should first reduce the portion of the loan used for the investment, which was $9,000. Therefore, $4,000 of the repayment reduces the investment portion, leaving $5,000 to reduce the portion used for the watch.

On February 1, T Borrowed $20,000