Julie borrowed \( \$ 7,600 \) for 8 months from a bank. The bank discounted the loan at \( 3.5 \% \). 0 of 1 a. How much interest did Julie pay the bank for the use of its money? b. How much did she receive from the bank? c. What was the actual rate of interest she paid?

To find out how much interest Julie paid for the loan, we can use the formula for calculating interest on a discounted loan. a. The interest can be calculated as: \[ \text{Interest} = \text{Loan Amount} \times \text{Discount Rate} \times \text{Time} \] Where: - Loan Amount = \( \$ 7,600 \) - Discount Rate = \( 3.5\% = 0.035 \) - Time = \( \frac{8}{12} \) years Thus: \[ \text{Interest} = 7600 \times 0.035 \times \frac{8}{12} = \$ 89.33 \] b. To find out how much she actually received from the bank (the present value), we must subtract the interest from the loan amount: \[ \text{Amount Received} = \text{Loan Amount} - \text{Interest} = 7600 - 89.33 = \$ 7,510.67 \] c. The actual rate of interest paid (note that this is based on the amount received, not the loan amount) can be calculated as: \[ \text{Actual Rate} = \frac{\text{Interest}}{\text{Amount Received}} \times 100 = \frac{89.33}{7510.67} \times 100 \approx 1.19\% \] So, to sum up: - Julie paid approximately \( \$ 89.33 \) in interest. - She received \( \$ 7,510.67 \) from the bank. - The actual rate of interest she paid was about \( 1.19\% \).