Date Interest Paid Form

Instructions and help about Date Interest Paid

in the U.S any partial loan payment first goes to cover any interest that is built up and the remainder of the partial payment then reduces the loan principal as an example let's say that someone owes seven thousand dollars on a five percent note with a maturity date of 90 days on day 40 they pay eight hundred dollars on the note and on Day 70 they pay an additional one thousand dollars on the Note what is the adjusted balance after day 40 and after Day 70 and what does the ending balance do to answer these questions we're going to go through five steps and we're going to do the calculations as we go step one is to calculate the interest amount from the date of the loan to the date of the first payment rounding to the nearest cent to calculate the interest amount we use the simple interest formula which is interest equals principal times rate times time so the principal is seven thousand dollars the rate is five percent which we must convert to a decimal by dropping the percent sign an