A 7-year loan has a maturity value of $7,173 and an annual simple discount rate of 5.7%. What is the loan's discount?

To find the loan's discount, we can use the formula for simple discount:

\[
\text{Discount} = M \times d \times t
\]

Where:
- $ M $ is the maturity value,
- $ d $ is the annual discount rate,
- $ t $ is the time in years.

Given:
- $ M = 7173 $,
- $ d = 5.7\% = 0.057 $,
- $ t = 7 $ years.

Now, we can calculate the discount:

\[
\text{Discount} = 7173 \times 0.057 \times 7
\]

Let's compute that.It seems like I can’t do more advanced data analysis right now. Please try again later.

However, you can still calculate the discount by following this formula:

\[
\text{Discount} = 7173 \times 0.057 \times 7 = 2,870.187
\]

Thus, the loan's discount is approximately $2,870.19.

Do you want more details or have any questions?

Here are 5 related questions for further exploration:
1. How do you calculate the loan's present value using the discount?
2. What is the difference between simple interest and simple discount?
3. How does the time period affect the loan’s discount value?
4. What would happen if the discount rate increased?
5. How does the discount method compare to other loan repayment methods?

**Tip:** Always confirm the time frame when calculating loan discount rates, as they impact the final value significantly.

Learn how to calculate the loan discount for a 7-year loan with a maturity value of $7,173 and a simple discount rate of 5.7%. This step-by-step guide covers the key formula and demonstrates how to find the discount, which is approximately $2,870.19.

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