Mary’s coffee shop borrowed $9,850 for new chairs and tables. The money was borrowed for 9 months at 9 ¼ % discounted rate, what
is the amount of the discount?
1 answer:
Let
M---------------> money borrowed -------------> <span>$9,850
r--------------> </span>discounted rate--------> <span>9 ¼=9.25-------> 0.0925
t---------------> time--------> </span><span>9 months=9*30=270 days
D-------------> </span><span>amount of the discount
we know that
D=M*r*t/360=(9850)*(0.0925)*(270/360)=683.34
the answer is $683.34</span>
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