Question

Find the interest in dollars and the proceeds for the following problem. Choose the right answers 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.

1. The interest is $

2. The proceeds are $

Answer 1

16.88

523.12

at least for the question i got

Answer 2

Interest: $16.875

Proceed: $523.125

Explanation:

Principal amount = 540

Interest rate : 12.5 % =
`(12.5)/(100)` = 0.125

Time: 90 days which will become
`(90)/(360)` = 0.25 year

Interest = principal amount × interest rate × time in year

= 540 × 0.125 × 0.25

= $ 16.875

Proceeds:

Principal amount - interest

= 540 - 16.875

= 523.125