When repaying a loan with discount interest, the true interest is about:

Name: When repaying a loan with discount interest, the true interest is about:
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In discount interest loans, the interest is calculated upfront and deducted from the loan amount before it is given to the borrower. This effectively increases the cost of borrowing because the borrower pays interest on money they never actually receive, often making the true interest rate approximately twice the stated interest rate.

When Repaying a Loan with Discount Interest, the True Interest