Sue received $671.50 in cash as the proceeds from a loan of $680. The discount rate was 10% simple interest. Find the discount period in months. Have I done this correctly?
I=Prt
$8.50 = $680(.10)t
$8.50 = $68t
t = .125
.125(12) = 1.5 months
I=Prt
$8.50 = $680(.10)t
$8.50 = $68t
t = .125
.125(12) = 1.5 months
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Yes, you are correct. Because
680 X 0.1 X 0.125 = 8.5
680 X 0.1 X 0.125 = 8.5