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N76 [4]
3 years ago
11

Henry takes out a $650 discounted loan with a simple interest rate of 12% for a period of 7 months. How much money does Henry re

ceive into his bank account when the loan is drawn down? Give your answer to the nearest cent.
Mathematics
1 answer:
murzikaleks [220]3 years ago
6 0

Answer:

$546

Step-by-step explanation:

Given

Amount, P = $650

Rate, R = 12%

Period, T = 7 months

Required

Determine the amount paid.

We'll solve this using simple interest formula, as thus

I = \frac{PRT}{100}

Substitute values for T, R and P

I = \frac{\$650 * 12 * 7}{100}

I = \frac{\$54600}{100}

I = \$546

<em>Hence, Henry's withdrawal is $546</em>

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