Sue Shopper received a $749.25 discount loan to purchase a refrigerator. The loan was offered at 12% for 120 days
1 answer:
The interest paid for the loan will be:
I=(PRT)/100
P=$749.25
R=12%
T=120 days=120/30=4 months=1/3 years
Hence:
I=(749.25×1/3×12)/100
I=$29.97
The proceeds will be:
Net proceeds=(gross proceeds)-(expenses)
=749.25-29.97
=$719.28
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