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Reuben Araújo received a $800 discount loan to purchase a washer and dryer. The loan was offered at 10% for 120 days. What are the proceeds?

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User Nmkyuppie
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1 Answer

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Final answer:

To calculate the proceeds, we need to understand that the discount loan is essentially the difference between the original price and the loan amount. The loan amount in this case is $800.

Step-by-step explanation:

To calculate the proceeds, we need to understand that the discount loan is essentially the difference between the original price and the loan amount. In this case, the original price is the total cost of the washer and dryer, and the loan amount is the discounted price Reuben is paying.

The loan amount can be calculated using the formula:

Loan Amount = Original Price - Discount

In this case, the original price is not given, but the loan is offered at a 10% discount. Therefore, we can assume that the original price is 100% and the discounted price is 90% of the original price.

Loan Amount = 0.9 * Original Price

Given that the loan amount is $800, we can set up the equation as:

0.9 * Original Price = $800

Solving for Original Price, we get:

Original Price = $800 / 0.9 = $888.89

Therefore, the proceeds, which is the loan amount, is $800.

User Rei Mavronicolas
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