Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans. Currently, the bank is providing one-year discount loans at 7.8%.

What is the effective annual rate on these loans? If you were required to repay $250,000 at the end of the loan for one year, how much would the bank have given you at the start of the loan?

P15-5 (similar to) Assigned Media Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans. Currently, the bank is providing one-year discount loans at 7.8%. What is the effective annual rate on these loans? If you were required to repay $250,000 at the end of the loan for one year, how much would the bank have given you at the start of the loan? If you were required to repay $250,000 at the end of the loan for one year, how much would the bank have given you at the start of the loan? $ (Round to the nearest dollar.)