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The Continental Bank made a loan of $29,000.00 on March 21 to Dr. Hirsch to purchase equipment for her office. The loan was secured
The Continental Bank made a loan of $29,000.00 on March 21 to Dr. Hirsch to purchase equipment for her office. The loan was secured by a demand loan subject to a variable rate of interest that was 4% on March 21. The rate of interest was raised to 4.35% effective July 1 and to 4.85% effective September 1. Dr. Hirsch made partial payments on the loan as follows: $700 on May 17; $1000 on June 28; and $300 on October 7. Each payment is first applied to any accumulated interest. Any remainder is then used to reduce the outstanding principal. The terms of the note require payment on October 31 of any interest not paid off by partial payments. How much must Dr. Hirsch pay on October 31?
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