Max Wholesaler borrowed $12,500 on a 9%, 120-day note. After 45 days, Max paid $4,375 on the note. Thirty days later, Max paid an additional $3,750. Use ordinary interest. a. Determine the total interest using the U.S. Rule. Note: Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent. Total interest amount $ 254.11
Max Wholesaler borrowed $12,500 on a 9%, 120-day note. After 45 days, Max paid $4,375 on the note. Thirty days later, Max paid an additional $3,750. Use ordinary interest. a. Determine the total interest using the U.S. Rule. Note: Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent. Total interest amount $ 254.11
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Word Problem 10-23 (Algo) [LU 10-3 (1)]
Max Wholesaler borrowed $12,500 on a 9%, 120-day note. After 45 days, Max paid $4,375 on the note. Thirty days later, Max paid an
additional $3,750. Use ordinary interest.
a. Determine the total interest using the U.S. Rule.
Note: Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.
Total interest amount
$
254.11
b. Determine the ending balance due using the U.S. Rule.
Note: Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.
Ending balance due](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0fa19111-624a-4f65-8b21-e8a1496208c1%2F7ddef1d0-4a6d-41af-beec-0dc3576ab8b4%2Fd65c85f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Word Problem 10-23 (Algo) [LU 10-3 (1)]
Max Wholesaler borrowed $12,500 on a 9%, 120-day note. After 45 days, Max paid $4,375 on the note. Thirty days later, Max paid an
additional $3,750. Use ordinary interest.
a. Determine the total interest using the U.S. Rule.
Note: Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.
Total interest amount
$
254.11
b. Determine the ending balance due using the U.S. Rule.
Note: Round your intermediate balances and interest amounts to the nearest cent. Round your final answer to the nearest cent.
Ending balance due
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