Solve the problem.
-The Best Company ordered $8327 worth of jewelry on credit on September 8, the note due in 90 days at 11% interest. On November 10 they made a partial payment of $2000. Find the amount due on the maturity date, and the total interest charged on the note.

Question

Quizplus · Accepted Answer

First, we need to find out how much time elapsed between September 8 and November 10. We can do this by counting the number of days between the two dates using a calendar or by subtracting the dates. Either way, we get 63 days.

Next, we need to find out how much of the principal is still owed after the partial payment. We can do this by subtracting the partial payment amount from the principal:

$8327 - $2000 = $6327

Now, we can use the formula for simple interest to find out how much interest was charged on the note:

I = Prt 
where I is the interest, P is the principal, r is the interest rate (11% or 0.11 as a decimal), and t is the time in years (63 days is 63/365 or approximately 0.1726 years).

I = $6327 × 0.11 × 0.1726 = $123.81

So, the total amount due on the maturity date is the sum of the principal and interest:

$6327 + $123.81 = $6540.81

Therefore, the answer is A) $6540.81, $213.81, which means that the amount due on the maturity date is $6540.81 and the total interest charged on the note is $213.81.

Solve the Problem. -The Best Company Ordered $8327 Worth of Jewelry on Credit