Posted by **Sabrina** on Wednesday, July 11, 2007 at 9:02pm.

Margaret recieved $671.50 in cash as proceeds from a loan of $680.00 The discount rate was 10% simple interest. Find the discount period in months.

Hummm. With simple interest, a rate of 10% on $680, in one month the balance would be 680*(1+(0.1/12)) = 685.66666. Ergo, the monthly payment would be 5.66666. So then number of months to make 671.5 would be (671.5/5.66666) = 118.5

## Answer This Question

## Related Questions

- Math Business - Janet got 671.50 in cash as the proceeds form a loan of $680. ...
- business Math - Carl Sonntag wanted to compare what proceeds he would receive ...
- math - 1. A 120-day simple discount promissory note for $12,000 with a simple ...
- business Math - You were offered the opportunity to purchase either a simple ...
- math/Finance - I want to know the formula to use 1. A 120-day simple discount ...
- Math Help!!!!! - 4) Jim has been offered a substantial cash discount if he pays ...
- math - Home health signed a 90,000 note at 11 1/2% simple interest for 180 days ...
- math - what is the effective interest rate of a simple discount note for $2700 ...
- Finance - Can anyone explain to me how to use this formula? Cost of failing to ...
- algebra - Stephanie Venze signed a simple discount note for $3400 for 120 days ...

More Related Questions