Qui: Lesson 9 Quiz 10365/ 3/take uet e Staff Sites Web Slice DQuestion 5 8 pts b

Question

Qui: Lesson 9 Quiz 10365/ 3/take uet e Staff Sites Web Slice DQuestion 5 8 pts buy a motorcycle on July 1, 2012 for $2,500.00 with $500.00 down. Yo monthly payments of $341.14. Your first payment is d 2012, u agree to pay the seller the remaining $2,000.00 at 9% with ue August 1, but you make the payment on August 4, 2012. Using the US Rule, answer the following: How much is the monthly payment? How much is the interest portion of the payment? How much is the principal portion of the payment? How much is the remaining balance? 10 pts Question 6

Explanation / Answer

1. The Monthly payment was $341.14 but the person pays on 4th August 2012 instead of 1st August 2012. So After interest, it will be calculated as

$2000x9%= $180 per year.

180/12= $15 per month.

15/30= $0.5 per day.

So the monthly payment = $341.14 + $0.5 x 3

= $341.14+ $1.5  

= $342.64.

2. The interest portion of the payment is calculated as:

2000 x ?/100= 9.

So ?= 0.45%.

The interest portion is $0.45%.

3. The principal portion of the payment is calculated as:

341.14/2000x 100= 17.05%.

So, the principal portion of the payment is $17.05.

4. The remaining balance is

= $2000- $342.64

= $1657.36.

So the person is given 3 days after due date so the payment would be

$341.14 + $0.5x 3

= $341.14+ $1.5

= $342.64.

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