You are about to sign a loan to buy your first car. As you are reading the loan contract (as Uncle Al strongly recommends) you see the phrase, "all interest is calculated using a discount interest rate of 8%." What does this phrase mean to you?
A) The interest rate on the loan is 8%.
B) The interest rate on the loan is higher than 8%.
C) The interest is calculated using a method that results in lower payments for the borrower.
D) The interest is calculated using a method that results in higher payments for the borrower.