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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.

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Q: Why do you pay less interest in the second month of a mortagre than the first?
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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

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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.


Why was July 1 important for renters in ANcient Rome?

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Is Semptember the 2nd month?

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Determine the amount of interest charged on S Carter's account during the second month S Carter's account?

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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.


Are you protected on the first week of the second month of birth control?

Yes