Solve the problem.
-The Smith's addition to their house is going to cost $23,150. On March 2 they sign a note at 9.5% interest due in 200 days. They make a partial payment on April 30 of $8000. What is the amount due on the maturity date? What is the amount of interest charged?

Question

Quizplus · Accepted Answer

The interest for the first period (March 2 to April 30) is calculated on the full amount, and then the partial payment is subtracted. The interest for the remaining period is calculated on the reduced principal. The total interest is $937.55, and the amount due is $16,087.55.

Solve the Problem. -The Smith's Addition to Their House Is Going to Cost