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How much interest will you pay if you borrow 2000 and you have to pay it back in two and a half years at 10 percent?
Wiki User
∙ 10y ago
If the rate is simply 10 percent, then you will have to pay 10% of 2000, which is 200.
If the rate is 10% per year and you have to pay that interest at the end of each year, you will pay 200 at the end of the first year, another 200 at the end of the second year, and 100 when you repay the loan six months later. A total of 500.
But if the interest at the end of each year is not paid at that time it gets added to the loan and you now have to pay interest on the interest as well as on the original loan. So at the end of the first year you will owe 2200, at the end of the second year you will owe 2420, and six months later you will owe 2541, of which 541 would be interest.
Calculations:
End of first year = 2000 + 10% (200) = 2200
End of second year = 2200 + 10% (220) = 2420
The interest for the third year would be 2420 x 10% = 242
but as it is only for half a year it will be half of 242 = 121.
Summary of interest calculations: 200 + 220 + 121= 541
Wiki User
∙ 10y ago
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You borrow 2000 from a friend and promise to pay back 3000 in two years. What simple interest rate will you pay?
8
Find the simple interest earned after 5 years on an investment of 2000 at 3.2 percent?
320
You deposit 2000 in a savings account that pays 10 percent interest compounded annually How much will your account be worth in 15 years?
7954/- At the end of 5 years - 2928/- At the end of 10 years - 4715/-
What interest rate will cause 2000 to gro wto 2247.20 in 2 years?
5.841
Dr Sand borrowed some money to buy new furniture for her office She paid 245.00 simple interest on a 3.5-year loan at 3.5 percent Find the principal?
2000
How much interest if you borrow 2000 at a rate of 6 percent for 2 years?
if its simple interest: I = prt = 240 the total money to be returned is 2240
You borrow 2000 from a friend and promise to pay back 3000 in two years. What simple interest rate will you pay?
8
How much interest will 2000 earn at 5 percent over four years compounded yearly?
It earns 431.0125 . After 4 years, it has grown to 2,431.01 .
What is the amount of the simple interest on a 2000 loan at 6 percent interest for 2 years?
It is 240 currency units.
Find the simple interest earned after 5 years on an investment of 2000 at 3.2 percent?
320
How much would 2000 become in 10 years at 5 percent interest?
If it is not compounded the interest would be 2000x10x.05=1000 If it is compounded then it is different.
What is 2000.00 for 4 years compounded daily at 2.25 percent apr?
APR stands for annual percentage rate. That being the case, it does not matter whether the interest is compounded every day or every millisecond. The effect, at the end of a year is interest equal to 2.25 percent. So, 2000 at 2.25 percent compounded, for 4 years = 2000*(1.0225)4 = 2000*1.093083 = 2186.17
What is 5 percent interest of 40000 dollars?
2000
Which loan would cost the borrower less money 2000 at 8 for 3 years or 2000 at 9.5 percent for 2 years How much interest would the borrower save by taking the cheaper loan?
8 percent of 2000 is 160 x 3 = 480 9.5 percent of 2000 is 190 x 2 = 380 100 hundred dollars cheaper.
Future value of 2000 in 5 years at interest rate of 5 percent?
Compounded annually: 2552.56 Compounded monthly: 2566.72
How much interest would you receive for 2000 at 1 percent interest rate for 1 year?
1 percent of 2,000 is 20 .
How much interest would you gain from 2000 dollars at 6 percent for five years?
Assuming simple interest, just multiply 2000 dollars x (6/100) x 5. For compound interest, the formula is a bit more complicated. You would get some more interest in the case of compound interest.
