Question 1181213
Here's how to calculate the loan's discount, net amount, and actual interest rate:

**1. Calculate the discount:**

*   **Convert the time to years:** 17 months / 12 months/year ≈ 1.4167 years
*   **Discount = Principal * Rate * Time**
*   Discount = $2500 * 0.051 * 1.4167
*   Discount ≈ $180.21

**2. Calculate the net amount of money Nicole receives:**

*   **Net Amount = Principal - Discount**
*   Net Amount = $2500 - $180.21
*   Net Amount ≈ $2319.79

**3. Calculate the loan's actual rate of interest (also called the effective interest rate or APR):**

The actual interest rate is the interest paid (the discount) expressed as a percentage of the net amount received, over the loan period.

*   **Actual Interest Rate = (Discount / Net Amount) / Time**
*   Actual Interest Rate = ($180.21 / $2319.79) / 1.4167
*   Actual Interest Rate ≈ 0.0777 * 0.7058 ≈ 0.0548
*   Actual Interest Rate ≈ 0.0548 * 100% ≈ 5.48%

**Answers:**

*   Loan's discount: Approximately $180.21
*   Net amount Nicole receives: Approximately $2319.79
*   Loan's actual rate of interest: Approximately 5.48%