50 This question illustrates what is known as discount interest. Imagine you are discussing a loan with a somewhat unscrupulous lender. You want to borrow $29,000 for one year, The interest rate is 19.5 percent. You and the lender agree that the interest on the loan will be 195 $29,000 $5,655. So, the lender deducts this interest amount from the loan up front and gives you $23,345. In this case, we say that the discount is $5,655. What is the interest rate on this loan? (Do not round intermediate calculations and round your answer to 2 decimal places, c.9. 32.16.) Interest rate Next >