Author Question: You lend a friend $1300 on May 11th. The demand loan rate is 10.12%. Your friend makes a partial ... (Read 262 times)

gbarreiro · **on:** Jun 6, 2019

Question 1

You borrow $4000 on August 2nd this year. Your demand loan carries an interest rate of 8.41%. You make partial payments of $500 on September 15th and $1575 on October 17th. You want to make a final payment to pay off the remaining outstanding balance on November 21st. What is the size of your final payment? Use the declining balance method.
◦ $2777.72
◦ $2208.18
◦ $2007.72
◦ $2080.18
◦ $2018.80

Question 2

You lend a friend $1300 on May 11th. The demand loan rate is 10.12%. Your friend makes a partial payment on May 26th for $550 and on June 19th for $675. You demand full repayment of the outstanding balance on July 17th. What is the final payment amount to? Use the declining balance method.
◦ $96.10
◦ $68.10
◦ $88.10
◦ $82.10
◦ $86.10

sierramartinez · **Reply #1 on:** Jun 6, 2019

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