Frank entered into a loan agreement to lend a friend $10,000 at an agreed interest rate of 18 percent.However,the state in which they both live has a statute that limits the interest rate on loans of this type to 15 percent.The friend then made the first three payments on the loan in accordance with the agreement,but has made no further payments and now has several unpaid back payments.Discuss the different approaches that a court might take in this situation.

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The Answer of Frank entered into a loan agreement to lend a friend $10,000 at an agreed interest rate of 18 percent.However,the state in which they both live has a statute that limits the interest rate on loans of this type to 15 percent.The friend then made the first three payments on the loan in accordance with the agreement,but has made no further payments and now has several unpaid back payments.Discuss the different approaches that a court might take in this situation.

Frank Entered into a Loan Agreement to Lend a Friend