Solve the problem.
-On June 18 Delane Adams bought a microwave oven for $350 on credit, the note due in 30 days at 11.25% interest. On July 1 she made a partial payment of $100. Find the amount due on the maturity date of the note and the interest paid on the note.

Question

Quizplus · Accepted Answer

To find the amount due on the maturity date, we first need to find out how much is still owed after the partial payment.

Amount still owed = $350 - $100 = $250

To find the interest due, we need to use the formula:

Interest = principal x rate x time

In this case, the principal is $250, the rate is 11.25% (or 0.1125 as a decimal), and the time is 30/365 (since interest is calculated on a per-day basis).

Interest = $250 x 0.1125 x 30/365 = $2.76

Therefore, the amount due on the maturity date is $250.76, and the interest paid on the note is $2.76. The closest answer choice is C. First, we need to find out how much Delane owes on the maturity date of the note.

The original price of the microwave was $350, and Delane made a partial payment of $100 on July 1. Therefore, the remaining balance on July 1 was:

$350 - $100 = $250

Next, we need to calculate the interest that accrues on the remaining balance. The interest rate is 11.25%, and the time period is 29 days (from July 1 to the maturity date of July 30). We can use the simple interest formula:

I = Prt

Where:
I = interest
P = principal (remaining balance)
r = interest rate (as a decimal)
t = time (in years)

Plugging in the values, we get:

I = $250 x 0.1125 x (29/365)
I = $2.76

So, the amount due on the maturity date of the note is:

$250 + $2.76 = $252.76

Therefore, the correct answer is C, $252.76 and $2.76.

Solve the Problem. -On June 18 Delane Adams Bought a Microwave Oven for Microwave