Max Wholesaler borrowed $2,000 on a 10%, 120 - day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an additional $630. What is the final balance due? Use the U.S. Rule to determine the total interest and ending balance due. Use ordinary interest.

Max Wholesaler borrowed $2,000 on a 10%, 120 - day note. After 45 days, Max paid $700 on the note. Thirty days later, Max paid an additional $630. What is the final balance due? Use the U.S. Rule to determine the total interest and ending balance due. Use ordinary interest.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Max Wholesaler borrowed $2,000 on a 10%, 120 - day note. After 45 days, Max paid $700 on
the note. Thirty days later, Max paid an additional $630. What is the final balance due? Use
the U.S. Rule to determine the total interest and ending balance due. Use ordinary interest.

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Step 1: Formula

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Step 2: Balance after 45 days

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Step 3: Balance after further 30 days or at 75th Day

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Step 4: Final amount due

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Step 5: Interest calculation

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