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?
Found 2 solutions by Adedeji Adenike, ikleyn:
Answer by Adedeji Adenike(1)   (Show Source):
Answer by ikleyn(52810)  (Show Source):
You can put this solution on YOUR website! .
The post says nothing about compounding, so from the context we can assume, by default, that the loan is simple interest.
Then the interest I = P*r*t, where
P = $15000 is the loan amount,
r = 7.25% = 0.0725 is the annual interest rate,
t = 3 years (36 months, time in the formula is in YEARS ).
So, according to the formula, the amount of interest is
P = 15000*0.0725*3 = 3262.50 dollars. ANSWER
Solved.
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To see many other similar solved problems, look into the lesson
- Simple interest percentage problems
in this site.
Notice that the novice tutor, Adedeji, mistakenly used months when calculated the interest.
In this place, the YEARS should be used, OBVIOUSLY.
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Adedeji, I saw and read your self-description.
Looking in your post, I see that you really need help in Math.
Which grade are you ?
Come again to the forum soon with your problems and questions - we, the tutors, will help you.
Do not hesitate to post your solutions to the forum --- it is very good way to develop your skills.
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