How to calculate interest on a loan
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If you take out a five-year loan for $20,000 and the interest rate on the loan is 5 percent, the simple interest formula works as follows:

$20,000 x .05 x 5 = $5,000 in interest

You might encounter simple interest on short-term loans. However, the way most banks and lenders charge interest is more complicated.

Step-by-step explanation:

7.25

step-by-step explanation:

we know that 7 equals to 7.0. we also know that 1/4=0.25. so we can add the two together and we get 7.25