Q: What is the principal balance if the principal plus interest at the end of 1 and a half years is 3360 at an annual interest rate of 8 percent?

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The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.

500 principal, 10 percent annual rate => 50 annual interest 2 year => 100 total interest.

Assuming 6.5% refers to the annual interest rate, the monthly interest is 111.04 approx.

441

2.25

Related questions

The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.

500 principal, 10 percent annual rate => 50 annual interest 2 year => 100 total interest.

Assuming 6.5% refers to the annual interest rate, the monthly interest is 111.04 approx.

441

12.76

463.72

24.80

2.25

62

75

700.31

2.25