Question 152978: can anyone help me with this, please? I am terrible at word problems.
"Ted owes $14,000 to Mary. The loan is payable in 1 year at 10%. Mary needs cast so 4 months before the loan is payable, she goes to the bank which will pay her the matuiry value of the loan less a 14% discount fee. Find the amount Mary will receive."
Answer by Earlsdon(6294)   (Show Source):
You can put this solution on YOUR website! First find the maturity value of the loan:
$14000, plus 10% of $14,000 = $14,000 + 0.1($14,000) = $14,000 + $1,400 = $15,400
The maturity value of the loan is $15,400
The bank will pay this amount less 14% of $15,400 as a processing fee.
$15,400 less 14% of $15,400 = $15,400 - 0.14($15,400) = $15,400 - $2,156 = $13,244
The Mary will receive $13,244
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