Finite Mathematics - Cabrillo College
4 HELENE PAYNE, FINITE MATHEMATICS Discounted Loans. Interest is deducted from the loan up front. L=amount of loan r=interest rate per year, as a decimal t=length of loan, in years R=proceeds (loan amount minus interest or discount) The proceeds Ris given by: (6.3) R= L Lrt= L(1 rt); where Lrtis the discount, the interest deducted from ................
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