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John Green received a $580 discount loan to purchase a television. The loan was offered at 16% for 60 days. Find the interest in dollars and the proceeds for the following problem.

The interest is $____.

15.21

14.74

15.47

The proceeds are $____.

554.53

544.53

564.53

Verified Answer :

nobillionaireNobley

For discounted loans, A = P/(1 - dt), where A is the loan amount, P is the proceeds, d is the discount rate and t is the time
 Proceed = A(1 - dt) = 580(1 - 0.16 x 60/365) = $564.53

Interest = A - P = 580 - 564.53 = $15.47

Answer:

Option 3

The interest is $15.47

Proceed = $564.53

Step-by-step explanation:

Given : John Green received a $580 discount loan to purchase a television. The loan was offered at 16% for 60 days.

To find : The interest in dollars and the proceeds for the following problem?

Solution :

The interest formula,

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Where, P is the principle P=$580

R is the rate R=16%=0.016

T is the time t=60 days  

\(I=580\times 0.16\times \frac{60}{360}\)

\(I=15.466\)    

The interest is $15.47.

Therefore, Option 3 is correct.    

The proceed is the amount received after interest.

Proceed = Amount - Interest

Proceed = $580- $15.47

Proceed = $564.53

Therefore, Option 3 is correct.                              

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