Sam Sounds received a $290 discount loan to purchase a stereo. The loan was offered at 16% for 90 days. Find the interest in dollars and the proceeds for the following problem.

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Harvey

Mathematics

12 February, 04:10

Sam Sounds received a $290 discount loan to purchase a stereo. The loan was offered at 16% for 90 days. Find the interest in dollars and the proceeds for the following problem.

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Sanaa Reeves · Answer 1

I = Adt; where p = $290 is the Amount of the loan, d = 16% = 0.16 is the discount rate and t = 90days = 90/365 = 18/73 is the period.

I = 290 x 0.16 x 18/73 = 11.44

Interest = $11.44

Proceed = Amount - Interest = 290 - 11.44 = $278.56