Jim Murphy Borrowed $30,000 on a 120-Day 14% Note

Multiple Choice

Jim Murphy borrowed $30,000 on a 120-day 14% note. Jim paid $5,000 toward the note on day 95. On day 105 he paid an additional $6,000. Using the U.S. Rule, Jim's adjusted balance after the first payment is:

A) $25,000
B) $28,891.67
C) $1,108.33
D) $26,108.33
E) None of these