Chris Shopper received a $800 discount loan to purchase a washer and dryer. The loan was offered at 10% for 120 days. What are the proceeds?

I tried this problem and the answer is not 26.40

800* 1 * 120/360 = $ 26.67

800 - 26.67 = $773.33

To find the proceeds of the loan, we need to calculate the interest charged on the loan.

First, we need to find the interest amount. The formula to calculate simple interest is:

Interest = Principal * Rate * Time

Where:
Principal = $800 (loan amount)
Rate = 10% (expressed as a decimal, 10/100 = 0.10)
Time = 120/365 years (since the loan is for 120 days)

Substituting the values into the formula:

Interest = $800 * 0.10 * (120/365)
Interest = $800 * 0.10 * 0.3288
Interest ≈ $26.304

Now, to calculate the proceeds, we subtract the interest amount from the loan amount:

Proceeds = Loan amount - Interest
Proceeds = $800 - $26.304
Proceeds ≈ $773.696

Therefore, the proceeds of the loan amount to approximately $773.70.

To find the proceeds, you need to calculate the total amount that Chris Shopper actually receives after deducting the discount loan. The formula for calculating the proceeds can be expressed as:

Proceeds = Principal amount - Discount amount

In this case, the principal amount is the loan amount, which is $800. The discount amount can be found by multiplying the principal amount by the interest rate and the time period (in years) that the loan is for. However, we need to convert the 120 days to years. There are 365 days in a year, so 120 days is approximately 0.3288 years (120/365).

Discount amount = Principal amount * Interest rate * Time period
= $800 * (10/100) * 0.3288

By performing the calculation, we can find the discount amount:

Discount amount ≈ $800 * 0.10 * 0.3288
≈ $26.40

Finally, we can calculate the proceeds by subtracting the discount amount from the principal amount:

Proceeds = Principal amount - Discount amount
= $800 - $26.40
= $773.60

Therefore, the proceeds that Chris Shopper receives after the discount loan is $773.60, not $26.40.

thats wrong