Question 1186538: What is the simple discount for a car costing 880,000 pesos, is a present value of 950,000 pesos due at the end of 5 years.
Answer by CPhill(1959)   (Show Source):
You can put this solution on YOUR website! The simple discount is the difference between the future value (the amount due at the end of the period) and the present value (the current cost of the car).
In this case:
* Future Value = 950,000 pesos
* Present Value = 880,000 pesos
Simple Discount = Future Value - Present Value
Simple Discount = 950,000 - 880,000
Simple Discount = 70,000 pesos
Therefore, the simple discount is $\boxed{70,000}$ pesos.
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