Principal Balance

lance7tour

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Aug 20, 2011
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Bill Moore is buying a used Winnebago. His April monthly interest at 12% was $125. What was Bill's principal balance at beginning of April? Use 360 days.

125 / 12% x 90/360

125 / .03

4166.67
 
Bill Moore is buying a used Winnebago. His April monthly interest at 12% was $125. What was Bill's principal balance at beginning of April? Use 360 days.

125 / 12% x 90/360

125 / .03

4166.67

The monthly interest has been given - why are you using "90"?

Are you supposed to use daily interest accumulation?
 
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