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What is the percentage of interest when the principal is 3500.00 the term is 3 months and the interest paid is 525.00?
.05% or 1/20th of a percent
How much will a 1 dollar deposit be worth after 48 years if the interest rate paid by the bank is 6 percent?
At simple interest, it would be $3.88 (6 cents per year for 48 years = 2.88). At compound interest, credited annually, it would be $16.39 (rounded). At compound interest, credited quarterly, it would be $17.44 (rounded). Compounding means that once credited, the interest becomes part of the principal for the next interest period.
How is interest different from compound interest?
Simple interest is interest paid on the original principle only, Compound interest is the interest earned not only on the original principal, but also on all interests earned previously.
What is the future value of 100000 dollars with 5 percent interest in 10 years?
Assuming interest is paid annually, 100000*(1.05)10 = 162889.46
How much will a 1 deposit be worth after 36 years if the interest rate paid by the bank is 8 percent?
bout $16
Is the percent of the principal paid as interest per time period.?
yes
Is the percent of the principal paid as interest per time period Answer?
yes
Does an increase of 4 percent in the interest rate result in a 4 percent increase in the total interest paid?
Not usually. A "4 percent increase in the interest rate" usually means that there is some reference interest rate of x percent that is increased to 4 + x percent. This means that the interest paid increases from x percent of the principal to 4 + x percent of the principal. Therefore, the interest paid increases by 100 (4/x) %. For example, if a recent Federal funds rate of 1 % in the United States were to be increased by 4 %, the interest paid on any given amount of principal would increase by 400 %!
If a simple interest of 4.5 percent was paid at the end of the year then find the balance at the end of the year?
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.
Interest paid on both the principal and the interest on the principal is what?
Compound Interest
What is a fixed percentage of the principal paid over a specific period of time?
simple interest
What is the percentage of interest when the principal is 3500.00 the term is 3 months and the interest paid is 525.00?
.05% or 1/20th of a percent
Interest paid on both the principal and the interest accumulated on the principal is called?
amount
A fixed percent of the principal of a loan or investment?
A fixed percent of the principal of a loan or investment is called a fixed interest. It is paid monthly or annually or whatever based on the agreement made.
What is the definition of an amortized loan?
An amortized loan is just a basic loan where the principal and interest are paid on a monthly basis. Usually, the majority of the interest is paid first, then the principal.
What is the best definition of compounding interest-?
Interest paid on interest previously received is the best definition of compounding interest.
Why is more interest paid at the beginning of a loan period than at the end of the loan period?
Charging interest is the method by which a lender profits from loaning money to a borrower. The lender will set the terms of any loan to their advantage. They obviously want to get paid first and get paid the most. The balance of a loan is typically higher at the beginning of a loan, and interest will be charged on the balance. So as a person makes payments on the loan typically he/she will be making a payment consisting of part interest and part principal. As the person pays down the loan the interest that is calculated at the compounding period will be less because the principal amount has been reduced. For example, a person has a $1000 payment, at the beginning of the loan the payment may be broken down as ($900 interest and $100 principal), on the last payment of the loan the payment of $1000 may look like ($950 principal and $50 interest).
