Final answer:
The periodic rate for a $2,400 loan with 8.5% APR, paid monthly, is 0.7083%. The interest in the first period is $17.00.
Step-by-step explanation:
The periodic rate can be calculated by dividing the annual percentage rate (APR) by the number of periods in a year. In this case, the loan has a 8.5% APR and is paid monthly, so the number of periods is 12. Therefore, the periodic rate can be calculated as:
Periodic rate = APR / Number of periods
Periodic rate = 8.5% / 12
Periodic rate = 0.7083%
To calculate the interest in the first period, we multiply the loan amount by the periodic rate:
Interest = Loan amount * Periodic rate
Interest = $2,400 * 0.7083%
Interest = $17.00