Not usually. A "4 percent increase in the interest rate" usually means that there is some reference interest rate of x percent that is increased to 4 + x percent. This means that the interest paid increases from x percent of the principal to 4 + x percent of the principal. Therefore, the interest paid increases by 100 (4/x) %. For example, if a recent Federal funds rate of 1 % in the United States were to be increased by 4 %, the interest paid on any given amount of principal would increase by 400 %!
>about $15 <
The interest rate is given in the question. It is 3.5%.The amount of interest paid on the loan depends on how much of the loan (if any) is paid back during the period of the loan. If there are no interim payments, the total interest at the end of 5 years is 2681.85 approx.
7000*0.03*6 = 1260
5% interest rate has the multiplier of 1.05 per year. 600 x 1.05^2 = 661.50 interest paid =661.50 - 600 = 61.50
The "13 percent rate" is the equivalent annual rate. So the interest will be 130.
1 percent of 2,000 is 20 .