Suppose that you need to borrow $2000 from your local bank, which offers a discount rate of 7 % if you pay off your loan in 2 years. Answer the following six questions:

A. What would be the term if the bank offers 3.87% discount rate?

B. How much would the bank get? If we keep the loan at $2367 and proceeds at $2000.

C. Find the interest rate (r) which is comparable to the discount rate (d) of 7 % when the term is 2 years.