SOLUTION: A bank in houston loans $40,000 to a business at 12.5 % annual simple interest for 15 months. How much interest will the bank earn? The answer I got was $6500. I gues the answer

Question 694897: A bank in houston loans $40,000 to a business at 12.5 % annual simple interest for 15 months. How much interest will the bank earn?
The answer I got was $6500. I gues the answer really was $6250. I multiplied the 40,000 by 12.5% and then multiplied that by 1.3 for the 15 months. That is where I messed up. I know 12 months is a year, but I am having troubles with it. Can you please help me understand?
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
15 months isn't 1.3 yrs, it's 1.25 years, use that and you will get it right.
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