Question 1173636
To find the equivalent amount Kathleen should pay today, we need to calculate the present value of her future loan payment. Here's how:

**Understanding the Concepts**

* **Future Value (FV):** $610 (the amount due in 8 months)
* **Annual Interest Rate (r):** 3.75% or 0.0375
* **Time (t):** 8 months, which is 8/12 of a year
* **Present Value (PV):** The amount to pay today

**Calculations**

Since this is simple interest, we can use the following formula:

* PV = FV / (1 + rt)

Let's plug in the values:

* PV = $610 / (1 + (0.0375 * (8/12)))
* PV = $610 / (1 + (0.0375 * 0.666667))
* PV = $610 / (1 + 0.025)
* PV = $610 / 1.025
* PV ≈ $595.12

**Answer**

Kathleen should be able to pay approximately $595.12 today.