Chris Shopper received a $1,000 discount loan to purchase a washer and dryer. The loan was offered at 12% for 120 days. What are the proceeds? $40.00 $144.00 $960.00 $1,440.00

Question

Mathematics

Braden

27 December, 15:20

Chris Shopper received a $1,000 discount loan to purchase a washer and dryer. The loan was offered at 12% for 120 days. What are the proceeds? $40.00 $144.00 $960.00 $1,440.00

+2

Answers (1)

Know the Answer?

Paris Garcia · Answer 1

The loan proceeds will be given as follows:

A=P (1+r/100) ^n

Plugging the values we obtain

n=4 months=

A=1000 (1+12/3*100) ^1

A=$1040

hence the proceeds will be:

1040-1000=$40