If you borrow $3,000 on an 8% discounted loan for 9 months, how much will you actually receive?
Mathematics · Middle School · Tue Nov 03 2020
Answered on
Given:
Principal Amount: $3,000
Discount loan rate = 8% or 0.08
Term = 9 months or ¾ year
Determine the amount of money receive.
Simple Interest Formula:
I = Prt
Solution:
The discount is the total interest of the loan, hence we must first solve for the interest, using the formula for simple interest.
I = Prt
I = 3000(0.08)(¾)
I = $180
Subtract the discount to the principal amount.
= $3000 - $180
= $2820
Final answer:
=$2820