document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1193473>Question 1193473</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Jason borrowed $3100 from the bank for 22 months. The bank discounted the loan at 7.8%.\r<BR>\n" );
document.write( "\n" );
document.write( "How much was the interest?<BR>\n" );
document.write( "$<BR>\n" );
document.write( " State your result to the nearest penny.\r<BR>\n" );
document.write( "\n" );
document.write( "How much did Jason receive from the bank?<BR>\n" );
document.write( "$<BR>\n" );
document.write( " State your result to the nearest penny.\r<BR>\n" );
document.write( "\n" );
document.write( "What was the actual rate of interest?<BR>\n" );
document.write( "% State your result to the nearest hundredth of a percent </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #848662 by </B><A HREF=/tutors/aboutme.mpl?userid=yurtman><B>yurtman(42)</B></A><img src=\"/images/stars/stars-07.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=yurtman><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=848662\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> **1. Calculate the Interest**\r<BR>\n" );
document.write( "\n" );
document.write( "* **Discount Period:** 22 months <BR>\n" );
document.write( "* **Discount:** $3100 * 0.078 * (22/12) = $445.10\r<BR>\n" );
document.write( "\n" );
document.write( "**2. Calculate the Amount Received**\r<BR>\n" );
document.write( "\n" );
document.write( "* **Amount Received:** $3100 - $445.10 = $2654.90\r<BR>\n" );
document.write( "\n" );
document.write( "**3. Calculate the Actual Rate of Interest**\r<BR>\n" );
document.write( "\n" );
document.write( "* **True Amount Borrowed:** $2654.90<BR>\n" );
document.write( "* **Interest Paid:** $445.10<BR>\n" );
document.write( "* **Time in Years:** 22 months / 12 months/year = 1.83 years\r<BR>\n" );
document.write( "\n" );
document.write( "* **Actual Interest Rate:** (Interest Paid / True Amount Borrowed) / Time <BR>\n" );
document.write( "    * Actual Interest Rate = ($445.10 / $2654.90) / 1.83 <BR>\n" );
document.write( "    * Actual Interest Rate = 0.0891 \r<BR>\n" );
document.write( "\n" );
document.write( "* **Actual Interest Rate (Percentage):** 0.0891 * 100 = 8.91%\r<BR>\n" );
document.write( "\n" );
document.write( "**Therefore:**\r<BR>\n" );
document.write( "\n" );
document.write( "* **Interest:** $445.10<BR>\n" );
document.write( "* **Amount Received:** $2654.90<BR>\n" );
document.write( "* **Actual Rate of Interest:** 8.91%<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );