MONTGOMERY COUNTY COMMUNITY COLLEGE MAT TOG
Assignments
Name
One. ay 15 business man Jeff Asso takes out a $725.000 loan at 3.15% annual
as Thema alate (the clay Jeff Asso has to pay off the loan) is December 1
1. Pow much wert Asso have to pay on December 11?
2. Suppose instund of paying off the entire loan on December 1st Mr. Asso decides
to pay $300 000 on May 14 and $375,000 on September 1st
a. On May 1
How much interest does Mr. Asso owe?
How much of Mr. Asso's $300,000 payment went to pay off the
principal, $725,000?
What is the new principal (or how much more does Mr. Asso still
owe)?