Question

4. When preparing for a business trip to China, Kaylee Putbrese determined she needed to bring $5.200.How much must she borrow for a simple discount note at 6% for 45 days?

Answer 1

SOLUTION:

Case: Discount

Given:

Final value = $5200

discount rate= 6% for 45 days

Required: To find how much she must borrow to give $5200

Method:

Step 1: Let the amount to borrow be P

Step 2: If he borrows P and enjoys 6% discount, he will only be paying 94% of the value he borrow. This translates to:

$\begin{gathered} \frac{94}{100}\times P=\text{ 5200} \\ P=\text{ 5200}\times\frac{100}{94} \\ P=\text{ \ 5531.91} \end{gathered}$

Final answer:

Kayle has to borrow $5531.91