A Man Takes Out a Loan at a Simple Discount

question 2

Multiple Choice

A man takes out a loan at a simple discount rate of d = 7.5%.If the amount he pays back in 11 months is $8235,what is the fee he pays for borrowing the money and when does he pay this fee?

• 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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