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18 lip 2022 · Example \ (\PageIndex {5}\) Francisco borrows $1200 for 10 months at a simple interest rate of 15% per year. Determine the discount and the proceeds. Solution. The discount \ (D\) is the interest on the loan that the bank deducts from the loan amount.
- Exercises
1) If an amount of $2,000 is borrowed at a simple interest...
- Exercises
1) If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years, how much is the interest? 2) You borrow $4,500 for six months at a simple interest rate of 8%. How much is the interest?
The factor (1+ rt)−1 in formula (3) is called a discount factor at a simple interest rate r and the process of calculating P from S is called discount-ing at a simple interest rate r, or simple discount at an interest rate r. We can display the relationship between P and S on a time diagram. P = S(1+ rt)−1.
2.4.1 Simple Discount at an Interest Rate; 2.4.2 Simple Discount at a Discount Rate
Simple interest. Suppose we borrow money from a bank. We will have to pay back: the initial amount borrowed, or principal, denoted P. extra charges, or interest, denoted I. Let r = interest rate (expressed as a decimal), and t = time (in years).
Use the formula $I=P\left(R \times \frac{D}{365}\right)$ to find the exact interest on $$\$ 100$$ for 30 days and $7.50 \%$.
19 paź 2022 · 1) If an amount of $2,000 is borrowed at a simple interest rate of 10% for 3 years, how much is the interest? 2) You borrow $4,500 for six months at a simple interest rate of 8%. How much is the interest?
