document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1130326>Question 1130326</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If a discount loan has a face value of $4200 and yields proceeds of $3759, find the amount of discount interest charged. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #746999 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=746999\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> with a discount loan, the interest is subtracted from the principal.<BR>\n" );
document.write( "the borrower gets the net value of the original loan amount minus the interest.\r<BR>\n" );
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document.write( "in this problem, the face value of the loan is 4200.\r<BR>\n" );
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document.write( "the loan yields proceeds of 3759.\r<BR>\n" );
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document.write( "this, i presume, is what the borrower gets.\r<BR>\n" );
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document.write( "if correct, that means the interest charged is 4200 - 3759 = 441.\r<BR>\n" );
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document.write( "the interest was calculated off the 4200, i believe.<BR>\n" );
document.write( "that would be 441 / 4200 = .105 = 10.5%\r<BR>\n" );
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document.write( "the effective interest would be 441 / 3759 = .1173184358 = 11.73% rounded to two decimal places.\r<BR>\n" );
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document.write( "i believe your solution is that the amount of discount interest charged is 441.\r<BR>\n" );
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document.write( "that's the difference between the face value of the loan and what the borrower gets.\r<BR>\n" );
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document.write( "the borrower gets 3759, but has to pay back 4200.\r<BR>\n" );
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document.write( "here's a reference on discount loans.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"https://marketbusinessnews.com/financial-glossary/discount-loan/\" target = \"_blank\">https://marketbusinessnews.com/financial-glossary/discount-loan/</a>\r<BR>\n" );
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