document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=607353>Question 607353</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A man borrows $360. If he pays it back in 12 monthly installments of$31.50, what is his interest rate?<BR>\n" );
document.write( "A)1.5%<BR>\n" );
document.write( "B)4.5%<BR>\n" );
document.write( "C)10%<BR>\n" );
document.write( "D)5%<BR>\n" );
document.write( "E)7.5% </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #382628 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=382628\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> \"he pays it back in 12 monthly installments of$31.50\" means he pays a total of 12*31.50 = 378 dollars.\r<BR>\n" );
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document.write( "Subtract 360 from this:  378 - 360 = 18\r<BR>\n" );
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document.write( "So he pays a total of $18 in interest. This means I = 18\r<BR>\n" );
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document.write( "The principle is 360. So P = 360\r<BR>\n" );
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document.write( "The amount of time is one year, so t = 1\r<BR>\n" );
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document.write( "I = Prt\r<BR>\n" );
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document.write( "18 = 360*r*1\r<BR>\n" );
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document.write( "18 = 360r\r<BR>\n" );
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document.write( "18/360 = r\r<BR>\n" );
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document.write( "0.05 = r\r<BR>\n" );
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document.write( "r = 0.05\r<BR>\n" );
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document.write( "So the interest rate is 5% </SPAN>\n" );
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