How do you calculate 4.9 apr over 4 years?

Answer 1

To calculate the total amount paid on a loan with a 4.9% annual percentage rate (APR) over 4 years, you can use the formula for compound interest if applicable: ( A = P(1 + r/n)^{nt} ), where ( A ) is the total amount, ( P ) is the principal, ( r ) is the annual interest rate (as a decimal), ( n ) is the number of times interest is compounded per year, and ( t ) is the number of years. If you're looking for the total interest paid, you can also use the simple interest formula ( I = P \times r \times t ) for a straightforward calculation. Adjust the method based on whether the interest is compounded or simple.