document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1101346>Question 1101346</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Larry is starting a small business and needs a loan. The bank offers Larry a $10,000 discounted loan at 4.5% for 7 years. What is the value of the proceeds Larry will get from the bank? <BR>\n" );
document.write( "Proceeds = $6850\r<BR>\n" );
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document.write( "What is the equivalent simple interest Larry will be paying over the 7 years of his loan? Give your answer as a decimal rounded to the thousandths place. <BR>\n" );
document.write( "Answer:____ (work for this problem and my process for the problem is shown below).\r<BR>\n" );
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document.write( "I'm not sure what I am doing wrong given that I used  I= P X r X t, where p= $10,000, r= 4.5% and t= =7. I then set it up as I= $10,000 * 4.5 * 7 divided by 100 = 315,000/100 and I= 3,150. I then took that $3,500 and put it into the formula above. So then it was set up as:  $10,000 - 3,150= 6,850. As a result, I had  $3,500 = $6,850 * (r) * (7). Which then left me  as 31,500/6,850= .4598540146/7.  But when I originally put that R=.0656934307 or.066. That turned out to be wrong. So I tried a different answer where I divided and that was wrong to 3,150 by 3,150 on one side and on the other, I had the 6,850 (.045) * (7) and then divide that answer by 3,150. Thus, I had 3,150 divided by 308.25. Which resulted in r= 10.2189781. Which I rounded off to 10.219. But that was wrong too apparently. So am I just rounding off wrong, or where am I making a mistake? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #715903 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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=715903\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Larry is starting a small business and needs a loan. The bank offers Larry a $10,000 discounted loan at 4.5% for 7 years. What is the value of the proceeds Larry will get from the bank?<BR>\n" );
document.write( "Proceed = 10000 - Interest<BR>\n" );
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document.write( "Proceeds = 10000- 10000*0.045*7 = 10000-3150 = 6850<BR>\n" );
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document.write( "What is the equivalent simple interest Larry will be paying over the 7 years of his loan? Give your answer as a decimal rounded to the thousandths place. <BR>\n" );
document.write( "Answer:<BR>\n" );
document.write( "I = P*r*t<BR>\n" );
document.write( "Solve for r when I = 3150 ; P = 6850; and t = 7 yrs<BR>\n" );
document.write( "3150 = 6850*r*7<BR>\n" );
document.write( "r = 0.06569...<BR>\n" );
document.write( "r = 0.0657 or 6.57%<BR>\n" );
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document.write( "Sorry for the earlier errors.<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
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