Janet got 671.50 in cash as the proceeds form a loan of $680. The discount rate was 10% simple interest. Find the discount period. I got 118.5 months but am not sure if I did it correctly.
2 answers
I do not understand why 10% loan interest would be called a "discount rate". Why was the cash received less than the loan amount? Were "points' added to the loan? Are payments made monthly? Is Janet the loaner or the borrower?
This is all the info I got in the question and is probably why I don't really understand what to do with it. Thanks anyway!