face-value $2400 note discounted at 12% If dis. was $95 find

[esquires]

I am unsure how to work this problem, could you help me?

A note with a face value of $2400 was discounted at 12%. If the discount was $95 find the lenght of the loan in days.

Liz

 

[Denis]

Re: Simple Discount Notes

Hint: 1 day = .12 / 365 * 2400 ; or .12 / 360 * 2400 : some lenders use 360

 

[megers3]

I'm pretty sure you can use the same formula to find the time in an interest problem.

time = interest/principal x rate

or in your case I think it would be:

T = discount/principal x rate
T = D/PR

T = 95/2400 x .12
T = 95/288
T = .32986 x 360 (days in business year)
T = 118.7496 days

 

[Denis]

What's your point Megers? This thread is over 1 year old!