a. Using the U.S. Rule the total interest cost is $390.6072.
b. Using the U.S. Rule the principal balances is $6,222.22; $4,332.84.
c. Using the U.S. Rule the final payment is $3,309.61.
First step
Interest for 100 days =$10,000 × 8%× 100/360 =$222.22
Total amount outstanding =$10,000 + 222.22 =$10,222.22
Second step
Payment made on 100th day =$4,000
Balance outstanding =$10,222.22 - $4,000 = $6,222.22
Third step
Interest for 80 days = $6,222.22 ×8%×80/360 =$110.6172
Total amount outstanding =$6,222.22 +$110.6172 =$6,332.84
Fourth step
Payment made on 180th day =$2,000
Total amount outstanding =$6,332.84 -$2,000 =$4,332.84
Fifth step
Interest for 60 days =$4,332.84 ×8%× 60/360 =$57.77
Final balance outstanding =$4,332.84+ $57.77 =$3,309.61
Hence:
a. Total interest cost:
Total interest cost =$222.22 +$110.6172+$57.77
Total interest cost=$390.6072
b. Principal balances:
Balance after the payment:
on 100th day = $6,222.22
on 180th day =$4,332.84
c. Final payment:
Final payment = $3,309.61
Learn more here:
https://brainly.com/question/14928470
