Tom is offered $15,000 from a local person known for his gambling prowess Tom would have to repay back $23,000 in 36 monthly installments of $521. according to the state where Tom lives the maximum amount of annual interest that can be charged on a loan is 20%
This sounds like a fake question.
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Native American Law Attorney
The statute limiting interest may not apply to this loan. You need to consult an attorney to determine if this violates the State's Consumer Protection or Usury laws. His gaming prowess would not be relevant or affect his ability to enforce the loan.
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I hate to agree with Ms. Koslyn, but this does not sound legitimate or sounds like a law school fact pattern. You have posted this in NC, and the amount of interest you stated is incorrect. Plus $521 over 36 months will not pay off the loan amount even without interest.