Question

Find the interest in dollars and the proceeds for the following problem. Choose the right answers. Tim Fisher received a $1200 discount loan to purchase a computer. The loan was offered at 18% for 180 days. Find the interest in dollars and the proceeds for the following problem. The interest is $. The proceeds are $.

Answer 1

To find the interest use the formula of
I=prt
I interest ?
P principle 1200
R rate 0.18
T time 180/360
I assumed that the interest is ordinary. It means there are 360 days in a year.
I=1,200×0.18×(180÷360)
I=108

The proceeds are
1200-108=1092

Hope it helps!