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Patricia Nall was approved for a $3,000, two-year, 11 percent loan with the finance charges figured using the discount method. How much cash will Patricia receive from this loan?

User Hiero
by
8.5k points

1 Answer

1 vote

Answer:

$2,340

Explanation:

The computation of cash received from this loan is shown below:-

cash received from this loan = Approved amount - (Approved amount × Two year × Percentage of loan )

= Approved amount - ($3,000 × 2 × 11% )

= $3,000 - ($3,000 × 2 × 0.11 )

= $3,000 - $660

= $2,340

Therefore, for computing the cash will Patricia receive from this loan we simply applied the above formula.

User FXbeckers
by
8.6k points
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