Find the actual interest rate paid, to the nearest tenth, on the simple discount note. $4000; discount

Question:

Find the actual interest rate paid, to the nearest tenth, on the simple discount note. $4000; discount rate 5.5%; length of loan 4 months

a. 6.6%

b. 7.6%

c. 5.6%

d. 4.6%

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...