Question 1101346
Larry is starting a small business and needs a loan. The bank offers Larry a $10,000 discounted loan at 4.5% for 7 years. What is the value of the proceeds Larry will get from the bank?
Proceed = 10000 - Interest
.
Proceeds = 10000- 10000*0.045*7 = 10000-3150 = 6850
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What is the equivalent simple interest Larry will be paying over the 7 years of his loan? Give your answer as a decimal rounded to the thousandths place. 
Answer:
I = P*r*t
Solve for r when I = 3150 ; P = 6850; and t = 7 yrs
3150 = 6850*r*7
r = 0.06569...
r = 0.0657 or 6.57%
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Sorry for the earlier errors.
Cheers,
Stan H.
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