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.

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1. 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?

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posted by drwls
2. 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!

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posted by Scott

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