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What if William received a 5000 car loan with a simple interest rate of 8 per year. If he borrows the money for 2 years how much interest will he pay?
Wiki User
∙ 6y ago
With simple interest the interest is on the capital only.
For 2 years, the interest is 2 × 8% of 5,000 = 2 × 8/100 × 5,000 = 800
Wiki User
∙ 6y ago
Wiki User
∙ 6y agoHe will pay 800.
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What is the calculation for a simple compound interest rate?
There is simple interest and there is compound interest but this question is the first that I have heard of a simple compound interest.
What makes the simple interest simple?
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What is the Formula for simple interest rate?
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What is the calculation for a simple compound interest rate?
There is simple interest and there is compound interest but this question is the first that I have heard of a simple compound interest.
What makes the simple interest simple?
It is interest on simply the original capital. After the first period, compound interest involves interest on the interest earned in previous periods and soit not simple.
Alfred wants to invest 4000 at 6 percent simple interest rate for 5 yrs how much interest will he received?
1200 rate*money invested*interest(divided by a 100) 5*4000*.06=1200
Is the annual interest rate the same as simple interest?
Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.
What is the difference of simple interest and simple discount?
Simple interest refers to interest that is only paid on principal. Simple discount refers to the amount that is deducted from the amount of the loan.
Definition of simple interest?
Simple interest is a term that is used for quickly calculating the interest charge on a loan.
what is the formula of simple interest?
The formula for simple interest is: A=P(1+rt)
Difference between simple and compound interest?
Simple interest is based on the original principle of a loan. Simple interest is generally used on short-term loans. Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on.
