This question illustrates what is known as discount interest. Imagine you are discussing a loan with a somewhat unscrupulous lender. You want to borrow $31,000 for one year. The interest rate is 20 percent. You and the lender agree that the interest on the loan will be .20 $31,000 = $6,200. So, the lender deducts this interest amount from the loan up front and gives you $24,800. In this case, we say that the discount is $6,200. What is the interest rate on this loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Interest rate %