document.write( "Question 570702: Could someone please help me with this problem. There was an example in the book, but I didn't understand it. \"An educational loan of $8400 for 10 years is to be repaid in monthly installments of $122.50. What is the annual rate of this loan, computed as simple interest?\" \n" ); document.write( "

Algebra.Com's Answer #367735 by josmiceli(19441) $\"\"$ $\"About$

You can put this solution on YOUR website!
10 years times 12 months/yr = 120 payments
\n" ); document.write( " $\"+120%2A122.5+=+14700+\"$
\n" ); document.write( "The total interest paid is $\"+14700+-+8400+=+6300+\"$
\n" ); document.write( "This is the interest over 10 yrs, so the annual
\n" ); document.write( "interest is $\"+6300%2F10+=+630+\"$
\n" ); document.write( "---------------
\n" ); document.write( "The annual interest rate is $\"+630%2F8400+=+.075+\"$
\n" ); document.write( "The annual interest rate is 7.5%
\n" ); document.write( "Hope I got it \n" ); document.write( "

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