A partial payment is made on the date(s) 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.
-$$\begin{array} { l l l l c l }
\hline & & \text { Effective } & \text { Maturity } & \text { Partial } & \text { Payment } \
\text { Principal }&\text { Rate } & \text { Date } & \text { Date } & \text { Amount } & \text { Date } \
\hline \$ 6500 & 4.25 \% & \text { May 16 } & \text { February 22 } & \$ 3500 & \text { January 9 } \
\hline
\end{array}$$
A) $3154.43
B) $3199.16
C) $3209.68
D) $3015.58

Question

A partial payment is made on the date(s) 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.
-$$\begin{array} { l l l l c l } 
\hline & & \text { Effective } & \text { Maturity } & \text { Partial } & \text { Payment } \
\text { Principal }&\text { Rate } & \text { Date } & \text { Date } & \text { Amount } & \text { Date } \
\hline \$ 6500 & 4.25 \% & \text { May 16 } & \text { February 22 } & \$ 3500 & \text { January 9 } \
\hline
\end{array}$$
A) $3154.43
B) $3199.16
C) $3209.68
D) $3015.58

Quizplus · Accepted Answer

The United States Rule involves calculating interest on the principal up to the date of partial payment, applying the payment to the interest first, then to the principal, and recalculating interest on the remaining principal until maturity.

A Partial Payment Is Made on the Date(s) Indicated A) $315443 B) $3199

A Partial Payment Is Made on the Date(s) Indicated A) $315443
B) $3199