Question

Marcela took out a $600 discounted loan with a 4% annual interest rate over a period of 8 months. How much money does Marcela get from the bank when she receives the loan? Round to the nearest dollar.

Answer 1

4 % of 600 over 8 months is 16

600-16=584

Answer 2

4.11%

Explanation:

This is a continuation of the last problem. We restate it here:

Marcela took out a $600 discounted loan with a 4% annual interest rate over a period of 8 months. What is the effective annual interest rate for the loan?

Round to two decimal places. Do not include the percent sign in the answer box below.