It may happen that nobody in this forum knows what the United States Banker Rule is, so it is better to provide a definition. Also, you may get better responses in the Business Math forum.
A partial payment is made on the date(s) indicated. Use the United States Rule to determine the balance due on the note at the date of maturity. (The Effective Date is the date the note was written.) Assume the year is not a leap year.
Rate 6.5 %
Effective Date May 16
Maturity Date February 22
Partial Amount $3500
Payment Date January 9
Any help on this problem would be appreciated, what I am getting confused on is the United States Banker Rule.
Disclaimer: my specialization is mathematical logic.
(All calculations done in OpenOffice Calc.)
Between the effective date and the partial payment date there are 238 date. Therefore, the interest on that date was $6000 * 0.0065 * 238 / 360 = $257.83. The partial payment is greater that that interest, so the balance of the payment is applied to the principle. Therefore, the new principle is $6000 + 257.83 - 3500 = $2757.83.
Between the partial payment date and the maturity date there are 44 days, so the interest is $2757.83 * 0.0065 * 44 / 360 = $21.91. So, the balance due is $2757.83 + $21.91.