Answer:
Interest = $11.414
Proceed = $278.586
Step-by-step explanation:
Given : Sam Sounds received a $290 discount loan to purchase a stereo. The loan was offered at 16% for 90 days.
To find : The interest in dollars and the proceeds for the following problem.
Solution :
The amount of loan A = $290
The discount rate = 16%=0.16
Time = 90 days
Convert into year,
1 year = 365 days
1 day = [tex]\frac{1}{365}[/tex] year
90 days = [tex]\frac{90}{365}=0.246[/tex] year
The formula of interest is
Interest = Amount × Discount rate × Time
Interest = 290 × 0.16 × 0.246
Interest = $11.414
Proceed = Amount - Interest
Proceed = $290 - $11.414
Proceed = $278.586
