Sandra Gloy Borrowed $5,000 on a 120-Day 5% Note

Multiple Choice

Sandra Gloy borrowed $5,000 on a 120-day 5% note. Sandra paid $500 toward the note on day 40. On day 90 she paid an additional $500. Using the U.S. Rule, her adjusted balance after the first payment is:

A) $4,527.87
B) $4,725.87
C) $4,725.70
D) $4,527.78
E) None of these