A finance company offers you a loan of $8,000 for two years. Interest of $1,500 on the

Question:

A finance company offers you a loan of $8,000 for two years. Interest of $1,500 on the loan is subtracted from the loan proceeds immediately. What is the bank on the loan? What is the true interest rate?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...