Find the interest in dollars and the proceeds for the following problem. Choose the correct answer.
Sue Shopper received a $749.25 discount loan to purchase a refrigerator. The loan was offered at 12% for 120 days. Find the interest in dollars and the proceeds for the following problem.
The interest is $ .
The proceeds are $ .
I = Ab*r*t=749.25*(0.12/360)*120 = $29.97
Ar = Ab-I=749.25 - 29.97=$719.28 = Amount received(proceeds).
I = Interest.
Ab = Amt. borrowed.
Ar = Amt. received.
Find the interest in dollars and the proceeds for the following problem. Choose the correct answers.
Tim Tele received a $380 discount loan to purchase a DVD player. The loan was offered at 18% for 60 days. Find the interest in dollars and the proceeds for the following problem.
The interest is $ .
The proceeds are .
Tim Tele received a $380 discount loan to purchase a DVD player. The loan was offered at 18% for 60 days. Find the interest in dollars and the proceeds for the following problem.
To find the interest in dollars and the proceeds for this problem, we need to use the formula for simple interest:
Interest = Principal x Rate x Time
In this case, the principal is the loan amount, which is $749.25. The rate is 12% or 0.12, and the time is 120 days (or 120/365 years if we want to convert it to a fraction of a year).
So, to find the interest, we can plug the values into the formula:
Interest = $749.25 x 0.12 x (120/365) = $ <<749.25*0.12*(120/365)=24.573698630136986>>24.57 (rounded to two decimal places)
Therefore, the interest in dollars is $24.57.
To find the proceeds, we need to subtract the interest from the loan amount:
Proceeds = Loan Amount - Interest
Proceeds = $749.25 - $24.57 = $<<749.25-24.57=724.68>>724.68 (rounded to two decimal places)
Therefore, the proceeds are $724.68.
So, the correct answers are:
The interest is $24.57.
The proceeds are $724.68.