No.
Compound interest
18.90 as an interest. and principle wil remain same.
compound
simple interest = principle (money) times the rate times the time
Compound
Interest
Compound interest
The answer is compound interest
Interest=Principle times rate times time
Interest=Principle times rate times time
The interest on a loan can be calculated in one of two ways - compounding or simple. Most loans in the U.S. are compounding loans, meaning that the interest is added to the principle each month before the new interest amount is calculated.
The interest on a loan can be calculated in one of two ways - compounding or simple. Most loans in the U.S. are compounding loans, meaning that the interest is added to the principle each month before the new interest amount is calculated.
The interest on a savings account is calculated by multiplying the account balance by the interest rate and the time the money is held in the account. This calculation is typically done on a monthly or annual basis.
The answer is called amortization. In a typical loan payment, interest is calculated based on the outstanding principle balance. When the periodic payment remains constant the amount of that payment allocated to interest declines as the principle balance is reduced.
With compound interest the interest amount is added to the principle and then earns interest as well. This is usually expressed as an annual percentage rate (APR). Simple interest is not added to the principle and does not earn further interest and is used rarely.
The simple interest in this case is $145,000. It is calculated by multiplying the amount by the interest rate and the length of time.
The amount of interest earned on an investment is calculated by multiplying the principal amount invested by the interest rate and the time the money is invested for. This formula is typically expressed as: Interest Principal x Rate x Time.