document.write( "Question 1151714: Your family plans to start a small business in your neighborhood. Your father borrows $15,000 from the bank at an annual interest rate of 7.25% rate for 36 months. What is the amount of interest he will pay on this loan? \n" ); document.write( "
Algebra.Com's Answer #773564 by ikleyn(52814)\"\" \"About 
You can put this solution on YOUR website!
.
\n" ); document.write( "
\r\n" );
document.write( "\r\n" );
document.write( "The post says nothing about compounding, so from the context we can assume, by default, that the loan is simple interest.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Then the interest  I = P*r*t, where\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "    P = $15000  is the loan amount,\r\n" );
document.write( "\r\n" );
document.write( "    r = 7.25% = 0.0725 is the annual interest rate,\r\n" );
document.write( "\r\n" );
document.write( "    t = 3 years  (36 months, time in the formula is in YEARS ).\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "So, according to the formula, the amount of interest is\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "    P = 15000*0.0725*3 = 3262.50 dollars.      ANSWER\r\n" );
document.write( "
\r
\n" ); document.write( "\n" ); document.write( "Solved.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "---------------\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "To see many other similar solved problems,  look into the lesson\r
\n" ); document.write( "\n" ); document.write( "    - Simple interest percentage problems \r
\n" ); document.write( "\n" ); document.write( "in this site.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Notice that the novice tutor,  Adedeji,  mistakenly used  months  when calculated the interest.\r
\n" ); document.write( "\n" ); document.write( "In this place,  the YEARS  should be used,  OBVIOUSLY.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "/\/\/\/\/\/\/\/\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Adedeji,  I saw and read your self-description. \r
\n" ); document.write( "\n" ); document.write( "Looking in your post,  I see that you really need help in  Math.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Which grade are you ?\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Come again to the forum soon with your problems and questions - we,  the tutors,  will help you.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Do not hesitate to post your solutions to the forum --- it is very good way to develop your skills.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "
\n" );