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10 January, 17:24

Chris Shopper received a $1,000 discount loan to purchase a washer and dryer. The loan was offered at 12% for 120 days. What are the proceeds? $40.00 $144.00 $960.00 $1,440.00

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  1. 10 January, 17:41
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    The loan proceeds will be given as follows:

    A=P (1+r/100) ^n

    Plugging the values we obtain

    n=4 months=

    A=1000 (1+12/3*100) ^1

    A=$1040

    hence the proceeds will be:

    1040-1000=$40
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