on January 1 Mustafa borrows $1000 on a demand loan from his bank. interest is paid at the end  of each quarter (march 31, june 31,september 31, December 31) and at the time of the last payment. interest is calculated at the rate of 12% on the balance of the loan outstanding . Mustafa repaid the loan with the follwing payments:

March 1      $100

april 17         $300

july 12           $ 200

august 20    $100

october 18     $300

       total             $1000

Calculate the interest payments required and the total interest paid  ?

Answer rating: 100% (QA)

First lets calculate the outstanding balance of the loan afte... View the full answer