You go to a lending institution that offers a 270-day discounted loan at d = 9%.You wish to walk out the door with $5000.What size loan should you ask for?
A)$4667.12
B)$5332.88
C)$5356.62
D)$5360.87

Question

Quizplus · Accepted Answer

To find the size of the loan, you need to calculate the face value of the loan using the formula: Face Value = Amount Needed / (1 - (d * (t/360))). Here, d = 0.09 and t = 270. Plugging in the values, Face Value = 5000 / (1 - (0.09 * (270/360))) = 5356.62.

You Go to a Lending Institution That Offers a 270-Day