Bruce Wayne borrowed $14 300.00 for investment purposes on May 19, on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $1,300.00 on June 28, $1,450 on September 25, and $4,200.00 on November 15. How much is the final payment on December 31 if the rate of interest was 11.5% on May 19; 8.21% effective August 1; and 6.35% effective November 1? Payment Date Payment Interest Cost Principal Portion Outstanding Balance 19-May 14300 28-Jun 1300 0 1300 13000 25-Sep 1450 0 1450 11550 15-Nov 4200 0 4200 7350 31-Dec 7350 0 7350 0 Interest Calculation Dates Days Time = Days/365 R (rate of interest) Interest cost First Interest Payment May 19 to June 28 Second Interest Payment June 29 to July 31 Aug 1 to Sept 25 Total Interest Payment 0 Third Interest Payment Sept 26 to Oct 31 Nov 1 to Nov 15 Total Interest Payment 0 Final Interest Payment Nov 16 to Dec 31
Bruce Wayne borrowed $14 300.00 for investment purposes on May 19, on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $1,300.00 on June 28, $1,450 on September 25, and $4,200.00 on November 15. How much is the final payment on December 31 if the rate of interest was 11.5% on May 19; 8.21% effective August 1; and 6.35% effective November 1? Payment Date Payment Interest Cost Principal Portion Outstanding Balance 19-May 14300 28-Jun 1300 0 1300 13000 25-Sep 1450 0 1450 11550 15-Nov 4200 0 4200 7350 31-Dec 7350 0 7350 0 Interest Calculation Dates Days Time = Days/365 R (rate of interest) Interest cost First Interest Payment May 19 to June 28 Second Interest Payment June 29 to July 31 Aug 1 to Sept 25 Total Interest Payment 0 Third Interest Payment Sept 26 to Oct 31 Nov 1 to Nov 15 Total Interest Payment 0 Final Interest Payment Nov 16 to Dec 31
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 11EB: Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from...
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Bruce Wayne borrowed $14 300.00 for investment purposes on May 19, on a demand note providing for a variable rate of interest and payment of any accrued interest on December 31. He paid $1,300.00 on June 28, $1,450 on September 25, and $4,200.00 on November 15. How much is the final payment on December 31 if the rate of interest was 11.5% on May 19; 8.21% effective August 1; and 6.35% effective November 1?
| Payment Date | Payment | Interest Cost | Principal Portion | Outstanding Balance |
| 19-May | 14300 | |||
| 28-Jun | 1300 | 0 | 1300 | 13000 |
| 25-Sep | 1450 | 0 | 1450 | 11550 |
| 15-Nov | 4200 | 0 | 4200 | 7350 |
| 31-Dec | 7350 | 0 | 7350 | 0 |
| Interest Calculation | ||||
| Dates | Days | Time = Days/365 | R (rate of interest) | Interest cost |
| First Interest Payment | ||||
| May 19 to June 28 | ||||
| Second Interest Payment | ||||
| June 29 to July 31 | ||||
| Aug 1 to Sept 25 | ||||
| Total Interest Payment | 0 | |||
| Third Interest Payment | ||||
| Sept 26 to Oct 31 | ||||
| Nov 1 to Nov 15 | ||||
| Total Interest Payment | 0 | |||
| Final Interest Payment | ||||
| Nov 16 to Dec 31 |
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