Question

A 3 month loan has $5,000 in proceeds and a discount rate of 3% determine the face value

Answer 1

Given: 3% discount was given of a 3 month loan of $5,000.

First, find 3% of $5,000:

`(3)/(100)` * $5,000

= 3 * 50

= $150

Then subtract the value with $5,000:

$5,000 - $150 = $4,850

Therefore the face value is $4,850.