Dirk Propp Borrowed $14 300

question 50

Essay

Dirk Propp 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 $1300.00 on June 28, $1450 on September 25, and $4200.00 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? Use the declining balance method.

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Definitions:

Italicized Phrase

A portion of text that has been printed in italics to emphasize it, distinguish it, or for stylistic purposes.

Nearest Tenth

Rounding to the closest tenth means adjusting a number to one decimal place.

Decimal

A number that includes a decimal point to represent a fraction of a whole.

Percentage

A way of expressing a number as a fraction of 100, denoted by the symbol %.