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Need Help With Algebra 2 HW ASAP Suppose you have a 200000 home loan with an annual interest rate of 6.5 percent compounded monthly If you pay 1200 per month what balance remains after 20 years?
Wiki User
∙ 9y ago
The balance is 129178.
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Looking at the amount remaining on the Capital (C) at a rate of r with a repayment of P, there is:
After 1 period: Cr - P
After 2 periods: (Cr - P)r - P = Cr^2 - Pr - P = Cr^2 - P(r + 1)
After 3 periods: ((Cr - P)r - P)r - P = Cr^3 - Pr^2 - Pr - 1 = Cr^3 - P(r^2 + r + 1)
After n periods: Cr^n - P(r^(n-1) + r^(n-2) + ... + r + 1)
The sum in the brackets that multiplies the repayment P is a geometric progression, which has sum:
sum = (r^n - 1) / (r - 1)
→ the amount remaining after n periods is given by
remaining = Cr^n - P (r^n - 1) / (r - 1)
With an APR of 6.5%, the yearly rate is 1 + 6.5/100 = 1.065
Compounded monthly, to get the same amount after one year the monthly rate is 1.065^(1/12) ≈ 1.00526 (a monthly percentage rate of approx 0.526%)
For 20 years, there are 12 x 20 = 240 monthly periods
→ amount remaining ≈ 200,000 x (1.00526)^240 - 1,200 x (1.00526^240 - 1) / (1.00526 - 1) ≈ 129,177.88 ≈ 129,178
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∙ 9y ago
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If 20000 is invested in a savings account offering 3.5 per year compounded continuously how fast is the balance growing after 7 years (Round your answer to the nearest cent.)?
With compound interest - the balance after 7 years would be 26336.18
Suppose you deposited 100 per month into a savings plan for 10 years and at the end of that period your balance was 22200. What is the amount you earned in interest was?
It was 10200.
What is the final balance for the investment1500 for 3 years at 10 compounded annually?
1996.50
Can you find the account balance on 3000 principal earning 6.4 interest compounded quarterly for 7 years?
An annual rate of 6.4% compounded quarterly means 1.6% (6.4/4) every 3 months (12/4). A period of 7 years is equivalent to 28 (7 x 4) compounding periods. Let say that the account balance is N dollars, so N = 3,000(1.016)^28 (100% + 1.6% = 1.016) N = $4,678.914
Taylor wrote a check for 18 on the same day his bank paid interest to his account If his account balance changed 13 that day how much interest did he earn?
Taylor wrote a check for $18 on the same day his bank paid interest to his account. If his account balance changed $13 that day, how much interest did he earn.
What is the interest and balance of 375 at 4 percent for 5 years?
If compounded, interest = 81.244 and balance = 456.245 If not compounded, interest = 75 and balance = 450
What would be the ending balance of a 700 savings account earning 8 percent interest compounded quarterly after 3 years?
8 percent compounded quarterly is equivalent to approx 36% annually. At that rate, after 3 years the ending balance would be 1762.72 approx.
What financial products offer compounding interest?
When a financial product pays compounded interest the investor earns interest on interest earned. For example, when $1,000 is invested at a compounded rate of 5 percent the principal balance of the investment would increase to $1,050 at the end of year one assuming annual compounding of interest. In year two the investor would receive interest at 5 percent on $1,050 for an interest payment of $52.50 in year two. Money left to accumulate at compounded interest can grow tremendously over time (see Compounded Earnings: Making Your Money Work for You).Banks offer compounded interest on savings accounts and certificates of deposit. Another method of obtaining a compounded rate of interest can be achieved by buying US Treasury issued zero coupon bonds which offer the advantage of long dated paper and the ability to know upfront what the compounded rate of return will be (see Zero Coupon Bonds Explained: Locking in Long Term Profits).
How the interest on savings account is calculated?
The interest on a business savings account is compounded daily using a 365-day year (366 days each leap year) and calculated on the collected balance.
How is the interest calculated on business savings accounts?
The interest on a business savings account is compounded daily using a 365-day year (366 days each leap year) and calculated on the collected balance.
Difference between compounded daily or monthly?
Compounded daily means interest is calculated and added to the account balance every day, resulting in slightly higher overall returns compared to compounding monthly, where interest is calculated once at the end of each month. This difference is due to the more frequent compounding events in daily compounding.
What if Jennifer deposited 10000 in an account that earns compound interest. The annual interest rate is 8 and the interest is compounded 2 times a year. The current balance in the account is 10?
No. If the account is earning interest the current amount should be greater than the initial deposit.
If 20000 is invested in a savings account offering 3.5 per year compounded continuously how fast is the balance growing after 7 years (Round your answer to the nearest cent.)?
With compound interest - the balance after 7 years would be 26336.18
If you invest 70000 at 12 return what is it worth in 15 years?
The answer depends on how the interest is compounded - but in simple interest compounded annually on $70,000 at 12 percent, the total value would be $383,150. The first year the investment would earn $8,400 ($70,000 x .12), and the "principle balance" would increase to $78,400. The second year interest would be earned on $78,400 ($70,000 + $8,400 earned in year one), which would be $9,408 ($78,400 x .12), making the new principle balance $87,808. Interest in the fifteenth year would be $41,052 paid on a principle balance of $342,098, for a total of $383,150.
What would be the ending balance of a 1290 savings account earning 12 percent interest compounded monthly after 1 year?
12 percent, compounded monthly is the equivalent of an annual rate of approx 390%. At that rate, 1290 would be worth 5025.81 (approx).
What is the answer of the balance in the compound interest account 1400 after 3 years at 5.5 percent?
The question doesn't tell us the compounding interval ... i.e., how often theinterest is compounded. It does make a difference. Shorter intervals makethe account balance grow faster.We must assume that the interest is compounded annually ... once a year,at the end of the year.1,400 x (1.055)3 = 1,643.94 (rounded)at the end of the 3rd year.
How much is charged on a balance of 1250 at 19.49 APR compounded monthly?
If there is no repayment then the compound interest will continue growing for ever - becoming infinite. If there is repayment then the charge will depend on the amounts of repayment.
