Q: How does penalty interest calculated?

Write your answer...

Submit

Still have questions?

Continue Learning about Math & Arithmetic

Accumulated or compound interest is calculated by adding interest to both the principal and any interest accumulated up to the point of the calculation.

simple interest

That depends on exactly how the interest is calculated. If its calculated once per year the answer would be: 3000 * 16 = 48.000 / 100 = 480,- If your interest is calculated per month or per 3 months the interest is going to be slightly more.

Simple interest is interest that is calculated only on the amount of unpaid principal on a loan. Such interest is not added to the value of the loan but is tracked separately. Compound interest is interest that is calculated on the total of unpaid principal and accumulated interest on a loan. The difference is in simple interest there is no interest charged on accumulated interest while in compound interest there is interest charged on accumulated interest.

Compound interest, but only if the previous interest is accumulated.

Related questions

No, they are not calculated as "a".

Accumulated or compound interest is calculated by adding interest to both the principal and any interest accumulated up to the point of the calculation.

simple interest

Auto loan interest payments are calculated using an amortization schedule.

Compound interest

A penalty and interest will be charged.

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.

Compound interest is calculated on the initial principal plus any accumulated interest, resulting in interest earning interest over time. Normal interest, on the other hand, is only calculated on the initial principal amount and does not take into account any interest that has already been earned.

how is interest calculated on back taxes

it is calculated by 6% of the cpi

pay interest but no penalty