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Please explain repayment amount calculation. I am doing mistake somewhere.
I did it as below.
Loan amount taken: n= 80% of collateral assets
Interest rate 15% on loan amount for 12 months.

Total repayment is n+ interest on n = n+n*0.15*1= 1.15n
Where I did wrong!

Hope it helps

I must be missing sth.

Can anyone explain, which words exactly provide information that 15% is deducted up front and that the loan proceeds are the remainder?

I also can't understand this sentence: "the loan amount less the total interest for the loan—15% of the loan amount"
Does it mean "the loan amount MINUS the total interest for the loan MINUS 15% of the loan amount"?
Or does it mean "the loan amount MINUS the total interest (WHICH IS 15% of the loan amount)"?

How with a 15% interest the total repayment amount can still be equal to the amount borrowed?

I'm so confused(

This one is real hard...
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Can someone help explain this solution.

Question created for banking people.
Loan proceeds - means the money that borrower gets.
Gmat says it creates the questions without bias. But the banking terms used in different parts of the world creates enough bias.
If the disbursed amount is .85n then the 15% interest should be calculated on the principal .85n not n. I think some questions are created to check for time management checking not for scoring.