Question

Karim was planning for his vacation to the Bahamas. To cover his costs, he took out a $15,800, 4% simple discount note and paid a $40 bank discount. What was the approximate length of his loan in days? Assume a 360-day year.

Answer 1

I = P*r*t
40 = 15,800*.04*(t/360)
40 = 79t/45
40*45/79 = t ≈ 22.8

The loan was for approximately 23 days.