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What is the total amount of money owed if 1250 was borrowed for four years at 3.5 interest?
Assuming Compound Interest
I(n) = I(o)[1 + r/100]&(n)
Where
I(o) = 1250
r = 3.5%
n = 4 years
Substitutie
I(4) = 1250[1 + 3.5/100]^(4)
Hence
I(4) = 1250 [ 1.035]^(4)
I(4) = 1250[1.147523]
I(4) = 1434.40 is the total amount owed.
NB Compound interest is the usual business practice of calculating interest.
NNB Payment would possibly be done on an monthly basis ; 1434.40 / 48 = 29.88 is paid each month .
What else can I help you with?
How much would 900 invested at 6 percent interest compounded continuously be worth after 4 years?
At 6% interest, the total amount of money increases by a factor of 1.06 (100% + 6%) every year, so to get the amount after 4 years, you calculate 900 x 1.064.
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
What is the amount of money P that will generate 40 in interest at a 10 interest rate over 5 years?
Oh, dude, it's like super simple math. So, to calculate the principal amount P, you just divide the interest by the interest rate times the number of years. In this case, 40 divided by (10% times 5 years) gives you the principal amount P. That's like, what, 80 bucks? Math is fun, right?
A combined total of 24000 is invested in two bonds that pay 7.5 and 9 simple interest The total annual interest is 1935 How much is invested in each bond?
x = the amount of money that was invested at the first bond y = the amount of money that was invested at the second bond x + y = 24,000 so, y = 24,000 - x 0.075x + 0.09y = 1935 0.075x + 0.09(24,000 - x) = 1935 0.075x + 2160 - 0.09x = 1935 -0.015x = - 225 0.015x = 225 x = 225/0.015 x = 15,000, this is the amount of money that was invested in the first bond y = 24,000 - x y = 24,000 - 15,000 y = 9,000, this is the amount of money that was invested in the second bond Check it: 15,000 x 0.075 = 1,125 9,000 x 0.09 = 810 1,125 + 810 = 1,935
Why is compound interest better than simple interest?
Compound interest is better than simple (or "nominal") interest because compound interest allows you to add your accumulated interest back to your total every given term (i.e. each day, each week, each month, quarterly, annually, etc.), thus increasing the amount of money you are earning interest on.Example:Say you deposit 100 dollars for 2 years at 10% per year in 2 banks, one which does not compound your interest (Bank A), and one that compounds annually (Bank B).Bank A:After 1 year: 100 x 1.10 (1.10 = your amount + 10%) = 110After 2 years: 100 x 1.20 (1.20 = your amount +10% x 2) = 120Bank B:After 1 year: 100 x 1.10 = 110but then instead of using 100 again, you add the additional 10 back into your total and collect interest on 110 dollars in year two.So:After 2 years: 110 x 1.10 (1.10 = your amount + 10%) = 121
What is the total interest paid on the principal amount borrowed?
The total interest paid on the principal amount borrowed is the additional money paid on top of the original loan amount as compensation to the lender for borrowing the money.
What is the interest and the total amount of money that the US government has borrowed known as?
The National Debt
What is the interest and total amount of money that the US borrowed?
either surplus or deficit :p
What are principal and interest on a loan?
The principal is the initial amount borrowed in a loan. Interest is the cost charged by the lender for borrowing that principal amount. The total repayment amount on a loan typically includes both the principal and the interest.
Why is the interest on a loan typically higher than the principal amount borrowed?
The interest on a loan is typically higher than the principal amount borrowed because it is the cost of borrowing money from a lender. Lenders charge interest as a way to make a profit and compensate for the risk of lending money. The interest is calculated as a percentage of the principal amount and is added to the total amount owed, making the overall repayment higher than the initial borrowed amount.
When we talk of interest rates are these the borrowing rates or the lending rates?
When we talk of interest rates , we are talking of the interest rate on the total amount of money borrowed by a person.
How do you calculate how much you will pay in interest on a loan or credit card?
To calculate the interest on a loan or credit card, you multiply the interest rate by the amount borrowed and the length of time the money is borrowed for. This will give you the total amount of interest you will pay over the loan or credit card term.
What does it mean to pay interest on a loan or credit card?
Paying interest on a loan or credit card means that you are charged a fee for borrowing money. This fee is a percentage of the amount you borrowed and is added to your total repayment amount.
How do lenders make money from borrowers?
Lenders make money from borrowers by charging interest on the money they lend. Interest is a fee that borrowers pay for the privilege of borrowing money, and it is typically a percentage of the total amount borrowed. This allows lenders to earn a profit on the money they lend out.
What is the difference between a loan and debt?
A loan is money borrowed from a lender that needs to be paid back with interest, while debt is the total amount of money owed by a person or entity, which can include loans as well as other financial obligations.
How does interest payments work in relation to loans and credit cards?
Interest payments on loans and credit cards are fees charged by lenders for borrowing money. The interest rate is a percentage of the total amount borrowed, and it is added to the principal balance. This means that borrowers end up paying back more than they originally borrowed. The higher the interest rate, the more you will pay in interest over time. It is important to make timely payments to avoid accruing additional interest and to pay off the debt as quickly as possible to minimize the total amount paid.
Define national debt?
the total amount of money that a country's central government has borrowed and is not still paid.
