Sam Sounds received a $290 discount loan to purchase a stereo. The loan was offered at 16% for 90 days. Find the interest in dollars and the proceeds for the following problem.

Answer 1

Ar = Ab-I = Ab - Ab*r*t.
Ar = 290 - 290*(0.16/360)*90,
Ar = 290 - 11.60 = $278.40 = Amt. received(proceeds).

I = $11.60.