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Why do you pay less interest in the second month of a mortagre than the first?
Wiki User
∙ 10y ago
Interests are usually paid on the basis of how much you owe. Here is an example. You borrow $20,000, and you agree to pay $1000 of the capital every month, plus an interest rate of 12% a year (i.e., 1% a month) of the remaining debt. (Note that I chose numbers in such a way as to make the calculations easier to follow.) Thus, you would pay:
The first month: Capital: $1000; interest: 1% of 20,000 = $200; and you still owe $19,000.
The second month: Capital: $1000; interest: 1% of 19,000 = $190; and you still owe $18,000.
Etc. - the main point is that the amount of interest you pay gets less and less over time, because you owe less and less, as you pay off your debt.
Wiki User
∙ 10y ago
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If Joe has 12070.75 dollars in his money market account and his monthly interest rate is 0.495 percent what would be the dollar amount of interest added to his account every month?
0.495 % = 0.00495 0.00495 x 12,070.75 = 59.75 So after the first month will be added $ 59.75. 12,070.75 + 59.75 = 12,130.50 0.00495 x 12,130.50 = 60.05 So after the second month will be added $ 60.05. And so on.
How much interest does 10000 earn a month?
That depends on where you put the money, and what the interest 'rate' or percentage is there. If you put the money in a mayonnaise jar and bury it under the back porch, it earns a steady, reliable, dependable "zero" in interest, every month, for as long as you leave it there. You can't lose ! If you put it in a bank account or other investment that pays, let's say, 6 percent annual interest, compounded monthly, then at the end of the first month, you'll get 50 added on top of your original 10,000. Then you'll have 10,050, so at the end of the second month, you'll get 50.25 added on top of the 10,050 and you'll have 10,100.25 going into the third month. It all depends on what percent annual interest they pay, ANDhow often they pay it.
What does the word compound means?
Compound in interest rates is as thus, compounded monthly means,if you get 3 cents interest this month, next month it compounds to 6 cents and so on! The next month 12 cents, depending on your financial institution and the rise and fall of interest rates.
What are the different types of interest earned on principle?
simple(interest is earned on the original principal) $100 earning 10% per month with earn $10 every month and compound(interest is compounded every set amount of time e.g. monthly and a new principal is derived) $100 earning 10% per month compounded monthly will earn $10 the first month after which it is compounded making the new principal $110 the next month will earn $11 and so on
Is 10 percent per month interest in lending in the Philippines legal?
10 percent interest per month any bank name
How do compound interest help increase the savings of bank customers?
Banks do not offer compound interest on the money deposited into the savings accounts. They offer only simple interest. However, this interest is compounded every month or quarter in order for the customer to gain full benefits of the same. Ex: let us say you hold Rs. 10,000/- in your bank account and as per the prevailing interest rate of 3.5% for a savings account, your interest for the first month will be 29.17 rupees. If the interest is compounded every month, the principal amount used for calculation of interest for the second month will be 10,029.17/- and the effective interest you earn the second month will be Rs. 29.25/- this way the interest will get added up with the principal amount every month to earn a extra few rupees into your account as interest.
When do you get interest on acww ds?
you get interest on the first day of every month.
How are babies 1 month apart?
If the first baby is born in the last second of the first month Then the second baby could be born the next month
Can someone get their period the first month of pregnancy?
Yes. But second month you can't get it if you are pregnant. :)
Is February before or after January?
February (second month) comes after January (first month).
If Joe has 12070.75 dollars in his money market account and his monthly interest rate is 0.495 percent what would be the dollar amount of interest added to his account every month?
0.495 % = 0.00495 0.00495 x 12,070.75 = 59.75 So after the first month will be added $ 59.75. 12,070.75 + 59.75 = 12,130.50 0.00495 x 12,130.50 = 60.05 So after the second month will be added $ 60.05. And so on.
Is Semptember the 2nd month?
No. January is the first month so February would be the second month and September would be the 9th month.
Why was July 1 important for renters in ANcient Rome?
The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.The first of any month was important for people in ancient Rome, not just July nor just renters. The first of the month, or the Kalends of the month was when all the bills were supposed to be paid. Rent, interest, loans, and anything else owed was accounted for on the kalends.
Determine the amount of interest charged on S Carter's account during the second month S Carter's account?
12.80
How much interest does 10000 earn a month?
That depends on where you put the money, and what the interest 'rate' or percentage is there. If you put the money in a mayonnaise jar and bury it under the back porch, it earns a steady, reliable, dependable "zero" in interest, every month, for as long as you leave it there. You can't lose ! If you put it in a bank account or other investment that pays, let's say, 6 percent annual interest, compounded monthly, then at the end of the first month, you'll get 50 added on top of your original 10,000. Then you'll have 10,050, so at the end of the second month, you'll get 50.25 added on top of the 10,050 and you'll have 10,100.25 going into the third month. It all depends on what percent annual interest they pay, ANDhow often they pay it.
Are you protected on the first week of the second month of birth control?
Yes
What is the interest on 6.5 million dollars per month?
With 4% interest is $ 30,000 per month.
