Problema Solution
You decide to take out a $20000 simple interest loan at 4% on Feb 25.
a) in 45 days you decide to pay off $8000 of the loan. What is your new principal? Explain
b) 30 days after the first payment, you pay another $6000. What is your new principal? Explain
c) 45 days after the second payment, your loans come due. How much do you need to pay then? Explain
Answer provided by our tutors
a) in 45 days you decide to pay off $8000 of the loan. What is your new principal? Explain
20,000(1 + (45/365)*0.04) - 8,000 = $12,098.63
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b) 30 days after the first payment, you pay another $6000. What is your new principal? Explain
12,098.63(1 + (30/365)*0.04) - 6,000 = $6,138.41
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c) 45 days after the second payment, your loans come due. How much do you need to pay then? Explain
6,138.41(1 + (45/365)*0.04) = $6,168.68
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