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What is the length of time required before a 1000000 deposit will double if the interest rate is 10 percent?
There's a rule of thumb for "double your money" problems: Time = 70/interest rate, so in this case approx 7 years.
What is the interest on R528 at 7 percent simple interest over 2 years?
7% simple annual interest over 2 years = 14% total interest.14% of R528 = R73.92 .
What is rule 72?
How long it will take for your money to double/divide the annual interest rate into 72.
How compound interest formula is helpful for a financial institution in order to calculate the amount due by customers?
In fact compound interest is exciting if you're lending but dangerous if you're borrowing as the interest is added to the principal and itself attracts interest. To calculate compound interest use the Rule of 42. Divide the rate of interest into the number 42 and the answer is the number of periods - usually years when dealing with annual interest - for the principal, i.e. the sum borrowed and therefore the amount to be paid back, to double in value. Example: borrow $1000 at 6% p.a., pay nothing each year and you will owe $2000 at the end of 7 years. Conversely, use the rule of 42 to find out the rate of depreciation. If your $10,000 car depreciates at 6% a year then it will be worth $5000 at the end of 7 years.
What is the yearly interest payment on a 32500 loan having an interest rate of 7 percent calculate as simple interest?
32500 is 325 "hundreds" so 7 times that ie 2275 is your annual interest.
