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spin [16.1K]
3 years ago
10

Find the bank discount and proceeds using ordinary interest for a loan to michelle anders for 7,200 at 8.25% annual simple inter

est from august 8 to november 8
Mathematics
1 answer:
FromTheMoon [43]3 years ago
6 0

Answer:

$145.5

Step-by-step explanation:

Period, t = August 8.to November 8 = 3 months

Simple interest formula :

A = P(1 + rt)

A = final amount =. 7200

7200 = P(1 + (0.0825 * 3/12))

7200 = P(1 + 0.020625)

7200 = P(1.020625)

7200 = 1.020625P

P = 7200 / 1.020625

P = 7054.5009

Bank discount :

A - P

7200 - 7054.5009

= $145.4991

= $145.5

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