Question

Pam and Chris found a home for which they would have to borrow H dollars. If they take out a 25-year loan with monthly payment M, express the interest I in terms of H and M

Answer 1

The amount of money borrowed is $ H
Time for borrowing is 25 years
Amount paid per month M
Amount paid per year 12M
Interest rate paid=I
Let the payment method be simple interest method, then:
I=(PRT)/100
plugging in our values we have:
I=(H×R×M)/100
hence:
I=HRM/100