Moneywise Loans and Credit Corp. makes many consumer loans by discounting the face value of the loan. The borrower gets the proceeds. For the loan below, determine the amount of the discount, the proceeds, and 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 Face Value Discount Rate Time Discount Amount Proceeds Interest Rate
a. $14,800 6.9% 92 days
b. $10,000 10.3% 180 days