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You applied for a one-year loan of $7000 from a bank that lends money at a discount rate of 6%. (a) Calculate the amount of

You applied for a one-year loan of $7000 from a bank that lends money at a discount rate of 6%.

(a) Calculate the amount of discount and the proceeds. (b) Find the rate of interest that is equivalent to a discount rate of 6%. (c) If you were to borrow the loan from a bank in Europe, what rate of interest would be equivalent to the Canadian rate in part (b) of this question?

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