Question

Martha Jones received a $540 discount loan to purchase a new sewing machine. The loan was offered at 12.5% for 90 days. Find the interest in dollars and the proceeds for the following problem.

The interest is $.

The proceeds are $.

Answer 1

Hey! Hope that I can help.

To do this, you need to multiply the 540 by 12.5 and also $\frac{1}{4}$ to get your answer.

Answer: 16.88

Answer 2

To find the interest you just use the interest formula which is
I=prt
I=?
P=540
R=0.125
T=90/360
I=540×0.125×(90÷360)=16.88

The proceeds
540−16.88=523.12

Hope it helps!