Dirk Ward borrowed $15,000 for investment purposes on May 10 on a demand note providing for a variable rate of interest and payment of any accrued interest up to, and including, December 31. He paid...


Dirk Ward borrowed $15,000 for investment purposes on May 10 on a demand note providing for a variable rate of interest and<br>payment of any accrued interest up to, and including, December 31. He paid $390 on June 25, $150 on September 20, and $200 on<br>November 5. How much is the accrued interest on December 31 if the rate of interest was 7.5% on May 10, 6% effective August 1, and<br>5% effective November 1? (Use the Declining Balance Method)<br>June 25 Payment<br>Calculate the interest accrued to June 25.<br>Calculate the amount of the payment that can be applied to the principal.<br>Calculate the remaining principal.<br>September 20 Payment<br>Calculate the interest accrued to August 1.<br>Calculate the interest accrued to September 20.<br>Calculate the amount of the payment that can be applied to the principal.<br>(a negative number)<br>Calculate the remaining principal.<br>The September 20 payment is not enough to cover the interest accrued to September 20. Nothing can be deducted from the<br>principal, but the interest is not added to the principal, it is carried over.<br>November 5 Payment<br>Calculate the interest accrued to November 1.<br>Calculate the interest accrued to November 5.<br>Calculate the amount of the payment that can be applied to the principal.<br>Calculate the remaining principal.<br>

Extracted text: Dirk Ward borrowed $15,000 for investment purposes on May 10 on a demand note providing for a variable rate of interest and payment of any accrued interest up to, and including, December 31. He paid $390 on June 25, $150 on September 20, and $200 on November 5. How much is the accrued interest on December 31 if the rate of interest was 7.5% on May 10, 6% effective August 1, and 5% effective November 1? (Use the Declining Balance Method) June 25 Payment Calculate the interest accrued to June 25. Calculate the amount of the payment that can be applied to the principal. Calculate the remaining principal. September 20 Payment Calculate the interest accrued to August 1. Calculate the interest accrued to September 20. Calculate the amount of the payment that can be applied to the principal. (a negative number) Calculate the remaining principal. The September 20 payment is not enough to cover the interest accrued to September 20. Nothing can be deducted from the principal, but the interest is not added to the principal, it is carried over. November 5 Payment Calculate the interest accrued to November 1. Calculate the interest accrued to November 5. Calculate the amount of the payment that can be applied to the principal. Calculate the remaining principal.
November 5. How much is the accrued interest on December 31 if the rate of interest was 7.5% on May 10, 6% effective August 1, and<br>5% effective November 1? (Use the Declining Balance Method)<br>June 25 Payment<br>Calculate the interest accrued to June 25.<br>Calculate the amount of the payment that can be applied to the principal.<br>Calculate the remaining principal.<br>September 20 Payment<br>Calculate the interest accrued to August 1.<br>Calculate the interest accrued to September 20.<br>Calculate the amount of the payment that can be applied to the principal.<br>(a negative number)<br>Calculate the remaining principal.<br>The September 20 payment is not enough to cover the interest accrued to September 20. Nothing can be deducted from the<br>principal, but the interest is not added to the principal, it is carried over.<br>November 5 Payment<br>Calculate the interest accrued to November 1.<br>Calculate the interest accrued to November 5.<br>Calculate the amount of the payment that can be applied to the principal.<br>Calculate the remaining principal.<br>December 31 Interest Payment<br>Calculate the interest accrued to December 31. (Inclusive)<br>

Extracted text: November 5. How much is the accrued interest on December 31 if the rate of interest was 7.5% on May 10, 6% effective August 1, and 5% effective November 1? (Use the Declining Balance Method) June 25 Payment Calculate the interest accrued to June 25. Calculate the amount of the payment that can be applied to the principal. Calculate the remaining principal. September 20 Payment Calculate the interest accrued to August 1. Calculate the interest accrued to September 20. Calculate the amount of the payment that can be applied to the principal. (a negative number) Calculate the remaining principal. The September 20 payment is not enough to cover the interest accrued to September 20. Nothing can be deducted from the principal, but the interest is not added to the principal, it is carried over. November 5 Payment Calculate the interest accrued to November 1. Calculate the interest accrued to November 5. Calculate the amount of the payment that can be applied to the principal. Calculate the remaining principal. December 31 Interest Payment Calculate the interest accrued to December 31. (Inclusive)
Jun 01, 2022
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