0
What is the net amount of money a borrower receives after the discount is subtracted from the principal?
The net amount a borrower receives after the discount is subtracted from the principal is calculated by taking the principal amount and subtracting the discount. For example, if the principal is $10,000 and the discount is $500, the borrower would receive $9,500. This net amount reflects the actual funds available to the borrower after accounting for the discount applied to the loan.
What else can I help you with?
What is the total amount borrowed called?
The total amount borrowed is referred to as the "principal." This is the initial sum of money that a borrower receives from a lender, which must be repaid, usually along with interest, over the term of the loan. Understanding the principal is crucial for borrowers as it determines the basis for interest calculations and repayment obligations.
Statement about installment loans is not true?
Installment loans are loans on which the interest is paid first and the borrower receives the proceeds.
Can you answer this please A math club receives a 12 percent discount on calculators If each calculator costs 15 before the discount how much will the club spend on 60 calculators after the discount?
First, calculate the discount on each calculator: 12% of $15 is $1.80. Therefore, the price after the discount is $15 - $1.80 = $13.20 per calculator. For 60 calculators, the total cost will be 60 x $13.20 = $792. Thus, the club will spend $792 on 60 calculators after the discount.
What is the definition of commission in math terms?
In math terms commission is the amount of money a salesclerk receives on a sale. A salesclerk receives a commission with their salary.
Eric earns 6.5 simple interest annually on his savings account. He has a beginning balance of 459.32. How much interest does he receive?
To calculate the simple interest earned by Eric, you can use the formula for simple interest: ( \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} ). In this case, with a principal of $459.32, an annual interest rate of 6.5% (or 0.065), and assuming the time is 1 year, the interest earned would be ( 459.32 \times 0.065 \times 1 = 29.93 ). Therefore, Eric receives approximately $29.93 in interest for one year.
When a borrower receives a discount loan the interests total is subtracted from the principal and the borrower receives the remainder. What is the remainder of the loan called?
loan proceeds
When a borrower receives a discount loan the interest total is subtracted from the principal and the borrower receives the remainder what is remainder of the loan called?
loan proceeds
When a borrower receives a discount loan the interest total is subtracted from the principal and the borrower receives the remainder. What is the remainder of the loan called?
loan proceeds
When a borrower receives a discount loan the interest total is subtracted from the principal and the borrower receives the remainder what is the remainder of the loan called?
aplus loan proceeds
When a borrower received a discount loan the interest total is subtracted from the principal and the borrower receives the remainder what is the remainder of the loan called?
loan proceeds
When a borrower receives a discount loan the interest total is subtracted from the principal and the borrower receives?
When a borrower receives a discount loan, the total interest amount is deducted from the principal before the loan is disbursed. As a result, the borrower receives a lower amount than the nominal loan amount because the interest is prepaid. This means that the borrower must repay the full nominal amount at maturity, even though they only received the discounted principal. Essentially, the borrower pays interest upfront, which can result in a higher effective interest rate compared to traditional loans.
When a borrower receives the face amount of a discounted note less interest the amount is known as?
When a borrower receives the face amount of a discounted note less interest the amount, this is known as a discount loan. A discount loan is not actually discounted in the traditional sense.
What is descibes a discount loan?
A discount loan is a type of loan where the interest is deducted from the principal amount before the borrower receives the funds. This means that the borrower gets less than the face value of the loan but is required to repay the full amount at maturity. For example, if a borrower takes out a $10,000 loan with a $1,000 discount, they would receive $9,000 upfront but owe $10,000 at the end of the loan term. This structure is often used in short-term borrowing arrangements.
What is loan discount?
A pure discount loan is the simplest form of a loan. With such a loan, the borrower receives money today and repays a single lump sum in the future. A one year 10% pure discount loan, for example would require the borrower to repay $1.10 in one year for every dollar borrowed today. Hope this helps!
What is pure discount loan?
A pure discount loan is the simplest form of a loan. With such a loan, the borrower receives money today and repays a single lump sum in the future. A one year 10% pure discount loan, for example would require the borrower to repay $1.10 in one year for every dollar borrowed today. Hope this helps!
What refers to the original amount of the money that was borrowed on a loan?
The original amount of money borrowed on a loan is referred to as the "principal." This is the initial sum that the borrower receives and is obligated to repay, excluding any interest or fees. The principal amount is the basis for calculating interest over the life of the loan.
What is the total amount borrowed called?
The total amount borrowed is referred to as the "principal." This is the initial sum of money that a borrower receives from a lender, which must be repaid, usually along with interest, over the term of the loan. Understanding the principal is crucial for borrowers as it determines the basis for interest calculations and repayment obligations.
