Adam smith received a $875 discount loan to purchase an entertainment center. the loan was offered at 10.5% for 120 days. find the interest in dollars and the proceeds for the following problem.

Interest = $ 30.59

Proceedings = $ 844.41

Step-by-step explanation:

Principal = $875

Rate of Interest (r) = 10.5%

Time(t) = 120 days = 0.33 years

n = number of times the interest rate is compounded in one year

⇒ n = 12

Now, Interest = Compound Interest - Principal

⇒ Interest = 905.59 - 875

                 = $ 30.59

And the proceedings are = Principal - Interest

                                           = 875 - 30.59

                                          = $ 844.41

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step-by-step explanation:

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