Sincere Personal Loan Corp. uses the discount method of calculating finance charges on many different loans. For the two loans below, calculate the discount amount that goes to Sincere and the proceeds that go to the borrower. Then, calculate the actual interest rate which is based on the proceeds rather than the face value. Use a 365-day year and compute actual rates to the nearest 1/100 of a percent.

Question

Sincere Personal Loan Corp. uses the discount method of calculating finance charges on many different loans. For the two loans below, calculate the discount amount that goes to Sincere and the proceeds that go to the borrower. Then, calculate the actual interest rate which is based on the proceeds rather than the face value. Use a 365-day year and compute actual rates to the nearest 1/100 of a percent.
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The Answer of Sincere Personal Loan Corp. uses the discount method of calculating finance charges on many different loans. For the two loans below, calculate the discount amount that goes to Sincere and the proceeds that go to the borrower. Then, calculate the actual interest rate which is based on the proceeds rather than the face value. Use a 365-day year and compute actual rates to the nearest 1/100 of a percent.
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