Sam Sounds received a $290 discount loan to purchase a stereo. The loan was offered at 16% for 90 days. Find the interest in dollars and the proceeds for the following problem.
Ar = Ab-I = Ab - Ab*r*t.
Ar = 290 - 290*(0.16/360)*90,
Ar = 290 - 11.60 = $278.40 = Amt. received(proceeds).
I = $11.60.
To find the interest in dollars and the proceeds, we first need to calculate the amount of interest using the following formula:
Interest = Principal x Rate x Time
Where:
Principal = $290
Rate = 16% (in decimal form, 0.16)
Time = 90 days
Plugging in the values, we can calculate the interest:
Interest = $290 x 0.16 x (90/365) [converting 90 days to a fraction of a year]
Calculating this expression will give us the interest in dollars.
Next, to find the proceeds, we subtract the interest from the principal:
Proceeds = Principal - Interest
Now, let's calculate the interest and the proceeds.