Answer:
hence proceeds is $2513.05 and discount is $443.47
Step-by-step explanation:
Lauren pays = $3,400
interest = 15%
time = 1 yr
[tex]P(1+\dfrac{r}{100} )^n = 3400\\P(1+\dfrac{15}{100} )^1 = 3400\\P=2956.52[/tex]
the amount to be discounted is
[tex]\dfrac{15}{100} \times 2956.52 = 443.47[/tex]
discount = $443.47
proceeds = $2956.52 -$443.47
proceeds = $2513.05
hence proceeds is $2513.05 and discount is $443.47
