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2. A $3000 loan on March 1 was repaid by payments of $700 on March 31, $1200 on June 15 and final payment on August 31. What
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Answer #1

Final payment to be made on August 31 = $1,171 (rounded off)

Refer table below for computation:

Date Installment amount Interest amount Principal amount Balance
1-Mar                  -                -                 -              3,000
31-Mar               700             18            682            2,318
15-Jun           1,200             35        1,165            1,153
31-Aug           1,171             17        1,153                  -  

For formulas and calculations, see table below:

Date Installment amount
(A)
Interest amount
(B)
Principal amount
(A)-(B)
Balance
43891 0 0 0 3000
43921 700 =3000*7.25%*1/12 =700-18 =3000-682
43997 1200 =2318*7.25%*2.5/12 =1200-35 =2318-1165
44074 =1153.1+17.4 =1153.1*7.25%*2.5/12 =1170.5-17.4 =1153-1153
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