Answer:
Sammy will receive US$ 1.547 at the start of this loan
Step-by-step explanation:
1. Let's review the data given to us for solving the question:
Advertised interest rate = 9%
Amount of interests Sammy will pay = US$ 153
Amount of the loan Sammy plans to take = US$ 1,700
2. How much will Sammy receive at the start of this loan?
Net amount Sammy will receive at the start of this loan = Amount of the loan Sammy plans to take - Amount of interests Sammy will pay
Net amount Sammy will receive at the start of this loan = 1,700 - 153
Net amount Sammy will receive at the start of this loan = 1,547
Sammy will receive US$ 1.547 at the start of this loan
Amount of interests Sammy will pay = Loan * Advertised interest rate
Amount of interests Sammy will pay = 1,700 * 9%
Amount of interests Sammy will pay = US$ 153
