Math Problem Statement
Jeremy borrowed
$
10
,
000
$10,000 at
15
%
15% ordinary interest for
122
122 days. On day
24
24 of the loan, he made a partial payment of
$
4
,
959
$4,959. On day
66
66, he made another partial payment of
$
5
,
070
$5,070. What is the maturity value of the loan after the partial payments?
Solution
To calculate the maturity value of Jeremy's loan after the partial payments, we need to account for the interest accrued and how the payments reduce the loan's principal over time.
Here are the steps:
1. Step 1: Calculate the ordinary interest accrued before the first payment.
Ordinary interest is calculated using the formula:
[ I = P \times r \times \frac{t
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Simple Interest
Partial Loan Payments
Formulas
Simple Interest Formula: I = P × r × t / 360
Remaining Principal Calculation
Theorems
Ordinary Interest Theorem
Suitable Grade Level
Grades 10-12
Related Recommendation
Loan Repayment with Partial Payments: $10,000 at 15% Interest Over 122 Days
Calculate Loan Maturity Value Using Ordinary Interest: $33,000 at 6% Over 244 Days
Loan Calculation with Partial Payments: $36,000 at 14% Interest
Calculating Ordinary Interest and Maturity Value for a Loan
How to Calculate the Maturity Value of a Loan with Simple Interest