Question: A partial payment is made on the date indicated. Use the United States rule to determine the balance due on the note at the date

A partial payment is made on the date indicated. Use the United States rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.

Principal

Rate

Effective

Date

Partial Payment

Maturity

Date

Amount

Date

$28002800

4.54.5%

Feb.Feb.

1

$10001000

MayMay

1

Aug.Aug.

31

(Round to the nearest cent as needed.)

The United States rule states that if a partial payment is made on a loan, interest is computed on the principal from the first day of the loan until the date of the partial payment. The partial payment is used to pay the interest first; then the rest of the payment is used to reduce the principal. The Banker's rule is used to calculate simple interest when applying the United States rule. The Banker's rule considers a year to have 360 days, and any fractional part of a year is the exact number of days of the loan.

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