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The ordinary interest is calculated as; [p x r x d/360 ]
where d is the no. of days
The ordinary interest till 40th day on $8500 is = $137
so the total sum will be 8500+ 137 = $8637
Raul paid $4250 on the 40th day , so the remaining amount is 8637- 4250 = $4387
now the rest of the interest shall be calculated on this amount: that is $ 35.33 for 20 days
so the remaining amount to be paid on 6oth day is $4422.33
total amount paid = 4422.33+ 4250 = $ 8672.33
if he would have paid the entire amount on 60th day then he would have pay the interest of : 205.41
sothe amount would be 8500+205.41 = 8705.41
thus he saved 8705.41 - 8672.33 = $33.08 ($33)
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