We have been provided with the informatio that

Amish Bakery needs $210,000 today

project will not produce any cash flows for two years

and 6he takes pure discount loan at 7.5 percent interest

So we will calculate the amount of Dicount and the loan amount as follow

Discount loan does not require the payment of interest or any other charges; rather but the interest and/or other charges from the face amount of the loan when it is given out

So the person taking out the discount loan receives less

Partcular
Amount in $

Amount of loan
100

Interest for 1st year
-7.5

92.5

Interest for 2nd year
-7.5

Net balance available today
85

So the amount of loan

=210,000 *100/85

=247058.82

=247049

Loan amount
247059

Less

Interest for 1st year
18529.5

Interest for 2nd year
18529.5

Discounted Loan Amount
210000

How much will the firm owe on this loan at the time it must be repaid =$ 247059