A Man Takes Out a Discounted Loan,with Face Amount $8235,at

question 101

Multiple Choice

A man takes out a discounted loan,with face amount $8235,at a simple discount rate of d = 7.5%.If the amount he pays back in 11 months is $8235,how much interest does the man pay on the loan and when does he pay the interest?

• A)$529.74,paid today at issue of the loan
• B)$529.74,paid at the end of 11 months
• C)$566.16,paid today at issue of the loan
• D)$566.16,paid at the end of 11 months

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