Final answer:
Jo's interest paid on the discounted loan of $6,650 for 8 months at a rate of 3.5% is calculated to be $155.39, which does not match any provided answer choices, suggesting an error in the options.
Step-by-step explanation:
The student's question is related to calculating the amount of interest paid on a discounted loan. In this case, Jo borrowed $6,650 for 8 months from a bank with the loan being discounted at 3.5%. The formula for the interest paid on a discounted loan is given by:
Interest = Principal × Rate × Time
To compute the interest:
- Convert the time from months to years by dividing by 12, since there are 12 months in a year: Time = 8 months ÷ 12 = 0.6667 years.
- Use the interest rate as a decimal: Rate = 3.5% ÷ 100 = 0.035.
- Multiply these values with the principal: Interest = $6,650 × 0.035 × 0.6667.
Calculating this we get:
Interest = $6,650 × 0.035 × 0.6667 = $155.39
Therefore, the correct answer is not listed among the given options, and there may be an error in the provided choices.