Question

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?

Answer 1

Let
M---------------> money borrowed -------------> $9,850
r--------------> discounted rate--------> 9 ¼=9.25-------> 0.0925
t---------------> time--------> 9 months=9*30=270 days
D-------------> amount of the discount

we know that
D=M*r*t/360=(9850)*(0.0925)*(270/360)=683.34

the answer is $683.34