Best Answer

The answer will depend on

- who you borrowed it from (a loan shark could well charge more than several hundred times what a reputable lender would charge),
- how long the loan was for,
- what the loan was for,
- what the expected return on your loan was,
- your credit rating or how risky the lender considered you,
- what securities you could put up - in case you did default on the loan,
- what the inflation rate was - now and over the term of the loan,
- the "normal" loan size for the lender.

Q: What interest rate would you be charged if you have borrowed r100000?

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9,938.20 * * * * * That would be correct only if banks charged simple interest as opposed to compound interest. Anyone believe that likely? The correct answer, when interest is compounded, is 7900*(1.043)6 = 10170.28

The original $50 loan would be considered the principal amount. The extra $10 would be considered interest charged on the principal.

That would depend on the original principal (the amount you borrowed) and how they compute interest.

No if the account earns interest daily, it's earning interest on interest essentially. So if you have $100 and you earn 1% interest, you would have $101 dollars the next day and earn 1.01 dollars in interest, and so on.

Compound interest is simply simple interest except the amount of interest you owe is always added into the amount of money you borrowed before you calculate.Lets give an example.You borrowed a million from the bank at Year 2000 with interest rates of 5%.The formula for simple interest is PIN/100, where P is Principle (amount owed), I is interest rate (in percentage), N is the number of years.Year 2000: 1,000,000Year 2001: 1,000,000 * 5 * 1 / 100 = 50,000 (this is the interest)Year 2002: (1,000,000 + 50,000) * 5 * 1 / 100 = 52,500By the end of 2002, you would owe the bank 1,102,500(1,000,000 + 50,000 + 52,500)The formula for compound interest is P * (1 + I/100)N where P,I and N still refers to the same thing.Year 2000: 1,000,000Year 2001: 1,000,000 * (1+5/100)1 = 1,050,000Year 2002: 1,050,000 * (1+5/100)1 = 1,000,000 * (1+5/100)2 = 1,102,500

Related questions

The monthly interest on $500,000 will depend on the interest rate at the time the money was borrowed. Interest is usually charged as an annual rate and then broken down into monthly segments.

9,938.20 * * * * * That would be correct only if banks charged simple interest as opposed to compound interest. Anyone believe that likely? The correct answer, when interest is compounded, is 7900*(1.043)6 = 10170.28

The original $50 loan would be considered the principal amount. The extra $10 would be considered interest charged on the principal.

That would depend on the original principal (the amount you borrowed) and how they compute interest.

You should figure out what you would pay in interest if you borrowed the money to purchase the property. Then decide why you would want to donate that amount to the bank if you have enough cash to buy.You should figure out what you would pay in interest if you borrowed the money to purchase the property. Then decide why you would want to donate that amount to the bank if you have enough cash to buy.You should figure out what you would pay in interest if you borrowed the money to purchase the property. Then decide why you would want to donate that amount to the bank if you have enough cash to buy.You should figure out what you would pay in interest if you borrowed the money to purchase the property. Then decide why you would want to donate that amount to the bank if you have enough cash to buy.

You can think of APR as the amount of interest you would pay if you borrowed an amount of money and kept it for one year. At the end of the year the APR would be multiplied times the amount you borrowed and that would be the interest you would owe. Of course it isn't used that way for credit card purchases. The credit card company divides the APR by 365 to create a daily interest rate. Then they multiply this daily rate times the number of days in the billing period and then by the amount you owe at the end of the period before interest is added and add this to the amount you owe. If you mean what is the APR on your credit card, this varies by the card you hold and is often used to decide which card to get, because the lower the APR the less interest you will have to pay.

The interest rate is the annual charge levied on you loan. If you borrowed 100 units of local currency and the interest rate was 10% then you would have to pay 10 units of local currency each year while you owed the 100. The monthly payment amount is the amount you pay back each month to pay back the money you have borrowed. Thus if you borrowed 100 at 10% interest and were to pay this back over a year your month payment amount would be (100+10)/12 = 9.166666666666667 a month for a year.

Well assuming it is compounded monthly then the total interest rate charged will be 3.765%. The total interest paid will be $75.30. There will be two payments of $1037.65.

You paid me back the 180 you borrowed plus 45 interest.45/180 = 0.25 = 25% .I charged you 25% for one week. That's equivalent to 1,300% a year.If you had kept the money for a whole year, you would have owed me 2,520 on a loan of 180.I was very happy that you agreed to that interest and agreed to pay me back in cash.I was even happier that you didn't take me to court. Should you change your mind anddecide to do that in the future, I'll deny that it ever happened.

There is no requirement to have a loan to purchase a house, therefore the minimum amount on interest would be zero.

No, interest is considered a variable cost because it can change based on the amount borrowed, the interest rate, and the length of time the funds are borrowed for. Fixed costs, on the other hand, remain constant regardless of the level of production or sales.

The annual percentage rate, or APR, is the interest rate charged on the amount borrowed. It reflects the annual cost of borrowing money. APR makes it easier to compare different loans and credit cards, because you can easily see which loan/credit card would be cheaper. For example, a loan with a 10% interest rate is less expensive than a loan with a 15% interest rate (assuming other things are equal).