SOLUTION: Find the discount D and the amount the borrower receives (proceeds) PR for the discount loan. M = $960, d = 6.25%, t = 10 months D = $ PR = $

Algebra ->  Finite-and-infinite-sets -> SOLUTION: Find the discount D and the amount the borrower receives (proceeds) PR for the discount loan. M = $960, d = 6.25%, t = 10 months D = $ PR = $      Log On


   

Question 1131680: Find the discount D and the amount the borrower receives (proceeds) PR for the discount loan.
M = $960, d = 6.25%, t = 10 months
D = $
PR = $
Answer by MathLover1(20849) About Me  (Show Source):
You can put this solution on YOUR website!
M = $960,
d+=+6.25%, =>0.0625
t+=+10 months=>t=%2810%2F12%29years=%285%2F6%29years

D=Mdt+
D=960%2A0.0625%2A%285%2F6%29+
D=50
D= $50
The Proceeds, PR, of the loan is the actual amount the borrower receives from the loan is given by
PR+=+M+-D+
PR+=++960-50
PR+=++910
PR= $910