raul fletes borrowed $10000 on a 210-day note that required ordinary interest at 10.32%. Raul paid $5000 on the note on 140th day. How much interest did he save by making the partial payment?
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Interest that would have been paid without the advance payment = $10000 x 10.32% x 210 / 360 = $602
Interest that will be laid with the advance payment = $5000 x 10.32% x 210 / 360 + $5000 x 10.32% x 140 / 360 = $301 + $200.67 = $501.37
Interest saved = $602 - $500.67 = $100.33
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