You are about to sign a loan to buy your first car. As you are reading the loan contract you see the phrase, all interest is calculated using a discount interest rate of 8%. What does this phrase signify?

A. Discount interest indicates that the 8% interest is subtracted (discounted) from the loan payment.
B. The first year of interest is subtracted (discounted) from your loan balance.
C. You should run away, screaming, no, no, Ill never take out a discount loan!!
D. The actual APR on this loan will be significantly lower than 8% due to the discount.