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Ugo [173]
3 years ago
8

Sam Sounds received a $290 discount loan to purchase a stereo. The loan was offered at 16% for 90 days. Find the interest in dol

lars and the proceeds for the following problem.
Mathematics
2 answers:
garri49 [273]3 years ago
6 0
I = Adt; where p = $290 is the Amount of the loan, d = 16% = 0.16 is the discount rate and t = 90days = 90/365 = 18/73 is the period.

I = 290 x 0.16 x 18/73 = 11.44
Interest = $11.44

Proceed = Amount - Interest = 290 - 11.44 = $278.56
avanturin [10]3 years ago
3 0

Answer:

Interest = $11.414

Proceed = $278.586

Step-by-step explanation:

Given : Sam Sounds received a $290 discount loan to purchase a stereo. The loan was offered at 16% for 90 days.

To find : The interest in dollars and the proceeds for the following problem.

Solution :

The amount of loan A = $290

The discount rate = 16%=0.16

Time = 90 days

Convert into year,

1 year = 365 days

1 day = \frac{1}{365} year

90 days = \frac{90}{365}=0.246 year

The formula of interest is

Interest = Amount × Discount rate × Time

Interest = 290 × 0.16 × 0.246

Interest = $11.414

Proceed = Amount - Interest

Proceed = $290 - $11.414

Proceed = $278.586

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