A
A person takes out a discounted loan with a face value of $500 for 6 months
from a lender wh...
![subject](/tpl/images/cats/ekonomika.png)
Business, 04.04.2021 09:00 anthonybowie99
A
A person takes out a discounted loan with a face value of $500 for 6 months
from a lender who charges a 91% discount rate. a) What is the discount, and
how much money does the borrower receive? b) What size loan should the
borrower ask for if he wants to receive $500 cash?
We have S€500, d=94%, t= 1 and calculate
discount D=Sdt = $500 x 0.095 x } = $23.75
proceeds P=S-D=$(500 - 23.75)= $476.25
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