document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1062224>Question 1062224</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Anna has a bank loan on their condominium on 1.5 million SEK. She has a variable interest rate is currently 3.75%. What percentage increase her annual interest expense, if the bank raises interest rates by half a percentage? Round off your answer to integers. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #677178 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><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/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=677178\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 1,500,000*0.0375*1 year, assuming simple interest and one year=56,250<BR>\n" );
document.write( "1,500,000*0.0425*1 year=63,750<BR>\n" );
document.write( "That is an increase of 7,500.<BR>\n" );
document.write( "Another way is 1,500,000*0.005, which is the increase alone=7500.<BR>\n" );
document.write( "If the interest is compounded, the answer will be different.<BR>\n" );
document.write( "The percentage increase is 7500/56,250=13.3% or 13% to the nearest integer.<BR>\n" );
document.write( "That is the same as .5/3.75. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );