Clark Kent took out a loan of $13,000 at 6% interest on April 17 to be repaid on

Question

Clark Kent took out a loan of $13,000 at 6% interest on April 17 to be repaid on November 17. If Clark plans to make a partial payment of $1700 on June 28, what will be ending balance? Use ordinary interest.

First calculate how much interest will accumulate in the first part of the loan. (Round to the nearest penny, do not include the $.)=?

Next calculate the amount of the partial payment going to pay down the principal. (Round to the nearest penny, do not include the $).=?

Next calculate the remaining principal left on the loan after the partial payment. (round to the nearest penny, do not include the $).=?

Part 2 of the loan

Next calculate the interest for the second part of the loan. (round to the nearest penny, do not include the $).=?

Finally calculate the ending balance (round to the nearest penny, do not include the $).=?

Explanation / Answer

hi,
Since he took 13,000 for 7 months i.e from april 17-nov 17, total interest would be 455,
now we want to calculate interest till Jun 28 i.e approx 2.5 months, since exact days aer not given, i am going to assume its 3 months
interest= 13000* (3/12)*0.06= 195
partial payment paydown would be 13000+195-1700= 11495
now the interest is going to be (4 since 4 months left)
11495* (4/12)*0.06= 227.6~ 228
ending balance will be 11495+228=11723
Thumbs up if this was helpful, otherwise let me know in comments

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