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How do you calculate simple interest earned?
simple interest = principle (money) times the rate times the time
If the principal is 350 and the interest rate is 3 percent what is the simple interest earned in one year simple interest P and times r and times t?
I
Is interest earned calculated by multiplying the principle times the opportunity cost?
No.
Why calculate times interest charges earned?
A metric used to measure a company's ability to meet its debt obligations. It is calculated by taking a company's earnings before interest and taxes (EBIT) and dividing it by the total interest payable on bonds and other contractual debt. It is usually quoted as a ratio and indicates how many times a company can cover its interest charges on a pretax basis. Failing to meet these obligations could force a company into bankruptcy. Also referred to as "interest coverage ratio" and "fixed-charged coverage." Investopedia explains 'Times Interest Earned - TIE' Ensuring interest payments to debt holders and preventing bankruptcy depends mainly on a company's ability to sustain earnings. However, a high ratio can indicate that a company has an undesirable lack of debt or is paying down too much debt with earnings that could be used for other projects. The rationale is that a company would yield greater returns by investing its earnings into other projects and borrowing at a lower cost of capital than what it is currently paying to meet its debt obligations.
Zane has 4 times more money invested at 9 percent than another bank where 6 percent is earned for the year if Zane earned 5040 in interest for the year. how much does Zane have invested at 9 percent?
Sorry I really don't know.
