Homework Answers
It is given that Patti has given an interest loan of $ 90000 to his Son due to which he is loosing an Interest amount @ 3% (i.e specified by federal interest semi annualy)
Calculation of interest for the year
A = P(1+r/n)nt
=$ 90,000( 1 + 3/2)2*1
=$ 92,720
Interest =Amount - Principal=92,720 - 90,000 = 2,720
Hence he is loosing an amount of $ 2720 as he is givig interest free loan to his son
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