Mary owes June $800, and wants to pay her off. She decides to borrow the amount from her bank at a discount rate of 12%. If she borrows the money for 10 months, find the amount of the loan she should ask for so that her proceeds are $800?

Tamara Bryan

Tamara Bryan

Answered question

2022-07-26

Mary owes June $800, and wants to pay her off. She decides to borrow the amount from her bank at a discount rate of 12%. If she borrows the money for 10 months, find the amount of the loan she should ask for so that her proceeds are $800?

Answer & Explanation

Eve Good

Eve Good

Beginner2022-07-27Added 18 answers

According to problem we will apply formula
Amount = Owes amount/ 1- dt
Here owes amount =800
d = 0.12 t = 10 12 A = 800 1 0.12 10 12 = 800 0.90 = 888.90

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