Question

Sammy plans on a discounted loan with an advertised interest rate of 9%. Sammy will pay $153 in interest on the $1700 loan. How much will Sammy receive at the start of this loan?

Answer 1

Answer:

Sammy will receive US$ 1.547 at the start of this loan

Step-by-step explanation:

1. Let's review the data given to us for solving the question:

Advertised interest rate = 9%

Amount of interests Sammy will pay = US$ 153

Amount of the loan Sammy plans to take = US$ 1,700

2. How much will Sammy receive at the start of this loan?

Net amount Sammy will receive at the start of this loan = Amount of the loan Sammy plans to take - Amount of interests Sammy will pay

Net amount Sammy will receive at the start of this loan = 1,700 - 153

Net amount Sammy will receive at the start of this loan = 1,547

Sammy will receive US$ 1.547 at the start of this loan

Amount of interests Sammy will pay = Loan * Advertised interest rate

Amount of interests Sammy will pay = 1,700 * 9%

Amount of interests Sammy will pay = US$ 153