Question

Find the interest in dollars and the proceeds for the following problem. Tim Tele received a $380 discount loan to purchase a DVD player. The loan was offered at 18% for 60 days. Find the interest in dollars and the proceeds for the following problem. The interest is $______. The proceeds are $______.

Answer 1

The interest is $9.86 and the proceeds are $380.

Step-by-step explanation:

To find the interest in dollars and the proceeds for the loan, we need to use the formula:

Interest = Principal × Rate × Time

Proceeds = Principal - Discount

Given that Tim Tele received a $380 discount loan, the principal amount is $380, the interest rate is 18%, and the time is 60 days.

First, let's calculate the interest:

Interest = $380 × 0.18 × (60/365)

Proceeds = $380 - $0

Using the above calculations, we find that the interest is $9.86 and the proceeds are $380.