This question illustrates what is known as discount interest. Imagine you are discussing a loan with a somewhat unscrupulous lender. You want to borrow $$22,000$ for one year. The interest rate is $17\mathrm{.}75$ percent. You and the lender agree that the interest on the loan will be $\mathrm{.}1775\backslash$times $$22,000=$ $$3,905.$ So$,$ the lender deducts this interest amount from the loan up front and gives you $$18,095.$ In this case, we say that the discount is $$3,905.$ What is the interest rate on this loan?