What are the proceeds for a discounted loan for $300 repaid in 8 months at 17%?
P = Po - Po*r*t
P = 300 - 300*(0.17/12)*8 = $266.
To calculate the proceeds for a discounted loan, you need to subtract the interest from the principal. The formula to calculate the interest on a loan is:
Interest = Principal x Interest Rate x Time
In this case, the principal is $300, the interest rate is 17% (or 0.17 as a decimal), and the time is 8 months (which we'll convert to years).
Converting the time from months to years, we divide by 12:
8 months / 12 = 0.67 years
Now we can calculate the interest:
Interest = $300 x 0.17 x 0.67 = $34.17
To find the proceeds, we subtract the interest from the principal:
Proceeds = Principal - Interest
Proceeds = $300 - $34.17 = $265.83
Therefore, the proceeds for a discounted loan of $300 repaid in 8 months at 17% would be approximately $265.83.