document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1185117>Question 1185117</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If 8,000 pesos is the present value of 11,000 pesos due at the end of seven months, what is the simple discount? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #815897 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=815897\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> simple interest equation is:<BR>\n" );
document.write( "f = i + p<BR>\n" );
document.write( "i = p * r * n\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "i is the interest<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period<BR>\n" );
document.write( "n is the number of time periods\r<BR>\n" );
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document.write( "in your problem:\r<BR>\n" );
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document.write( "f = 11000<BR>\n" );
document.write( "p = 8000<BR>\n" );
document.write( "i = 11000 minus 8000 = 3000<BR>\n" );
document.write( "n = 7 months\r<BR>\n" );
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document.write( "r is the interest rate per month.<BR>\n" );
document.write( "i believe that is what they are calling the simple discount, but i'm not sure because the terminology is not what i'm used to.\r<BR>\n" );
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document.write( "the formula becomes:<BR>\n" );
document.write( "f = p + i<BR>\n" );
document.write( "when f = 11000 and p = 8000, then:<BR>\n" );
document.write( "11000 = 8000 + i.<BR>\n" );
document.write( "solve for i to get:<BR>\n" );
document.write( "i = 11000 - 8000 = 3000\r<BR>\n" );
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document.write( "i = p * r * n<BR>\n" );
document.write( "i = 3000<BR>\n" );
document.write( "p = 8000<BR>\n" );
document.write( "n = 7\r<BR>\n" );
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document.write( "the formula becomes:<BR>\n" );
document.write( "3000 = 8000 * r * 7<BR>\n" );
document.write( "solve for r to get:<BR>\n" );
document.write( "r = 3000 / (8000 * 7) = .0535714286.\r<BR>\n" );
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document.write( "that's the discount rate per month.\r<BR>\n" );
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document.write( "if you pay today, it's 8000<BR>\n" );
document.write( "if you pay in 7 months, it's 11000<BR>\n" );
document.write( "the finance charge is .0535714286 * 8000 per month that you delay payment.<BR>\n" );
document.write( "in 7 months, the finance charge becomes 8000 * .0535714286 * 7 = 3000.\r<BR>\n" );
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document.write( "if this is not what you wanted, please clarify what it is that you did want.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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