In 1915,Albert Epstein allegedly borrowed $7,000 from a large New York bank on the condition that he would repay 7% of the loan every three months, until a total of 50 payments had been made. At the time of the 50th payment, the $7,000 loan would be completely repaid. Albert computed his annual interest rate to be[0.07($7,000)×4]/$7,000=0.28(28%).