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What is the formula used to calculate 8.5 percent interest on a credit card with a balance of five hundred dollars?
Wiki User
∙ 19y ago
Credit card companies use several methods to calculate interest. There can be one or two billing cycles per month. Interest can be charged on the daily balance, new purchases, etc. You should refer to the "How finance charges are calculated" section of you billing statement.
Wiki User
∙ 19y ago
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What is the Formula for daily compound interest?
The formula for the daily compound interest is B=p(1+r over n)NT as an exponent for the nt B= ending balance P= principal amound r= interest rate n= number of compounds per year t= time( in years)
WHAT does the carrot in the formula for compound interest means?
There is no carrot in the compound interest formula!
How do you calculate a ratio from a percent?
Formula to calculate the ratio
How do you solve compound interest formula for n?
It depends on which compound interest formula you mean. Refer to the Wikipedia Article on "Compound Interest" for the correct terminology.
What is future value of 10000 with 5 percent interest for 15 years?
To calculate the interest gained on something, a simple formula is used. Initial value x (percentage increase as a decimal)^years So: 10000 x 1.05^15 = 20789.28 (2d.p).
How can one calculate their interest?
The formula used to calculate your interest is the principle balance, multiplied by the monthly interest rate. Then you mulitply that by the number of months in which you last paid interest.
Assuming a 30-day period in November calculate November's interest using the average daily balance method?
Use this simple formula: I=Average daily balance times the interest rate, divided by 366 times 30 days in November.
What is the formula to calculate interest?
In calculating for the interest, please use the formula below:I = PRTwhere I stands for InterestP for principalR for rate; andT for time
What is the formula to calculate monthly interest rate if the annual interest rate is known?
Annual Interest Rate divided by 12= Monthly Interest Rate
Which formula determines the interest amount on a loan?
Current (principle balance) x (interest rate per year) x (amount of time). Examples: ~for calculating monthly interest, it would be (principle balance) x (interest rate) / 12. ~for daily interest, it would be (principle balance) x (interest rate) / 365.
How do you calculate a continuous compounding interest?
Continuously compounded interest is interest that is constantly being calculated and added to a balance. It can be calculated using the formula, A=Pe Rt. A stands for the total amount, P stands for the original investment, E stands for the constant 2.7183, R stands for the interest rate as a decimal, and T stands for the number of years.
What is the formula to calculate a credit card balance of 513.24 with a 17 daily interestrate making 10.00 payments each month?
The 17% interest is actually an annual rate, so each month you are charged 17%/12=1.42%. There is no simple formula to calculate your monthly balance as far as I know, the best way is to just calculate each month. Month 1: Carry-over Balance: 513.24$ Interest: 1.42% x 513.24 = 7.27$ Payment: 10.00$ Final Balance: 513.24$ + 7.27$ - 10.00$ = 510.51$ Month 2: Carry-over balance: 510.51$ Interest: 1.42% x 510.51 = 7.23$ Payment: 10.00$ Total: 510.15$ + 7.23$ - 10.00$ = 507.74$ Month 3: Carry-over balance: 507.74$ Interest: 1.42% x 507.74 = 7.19$ Payment: 10.00$ Total: 507.74$ + 7.19$ - 10.00$ = 504.94$ ... (I calculated how far it would go using Excel) Month 93: Carry-over balance: 3.12$ Interest: 1.42% x 3.12 = 0.04$ Payment: 3.16$ Total: 3.12$ + 0.04$ - 3.16$ = 0.00$ So, with 17% annual interest rate and a 10.00$ payment every month, it'll take 7 years and 9 months to pay off your bill. You will have spent a total of 923.16$, or 409.92$ in interest on a 513.24$ balance. Credit card balances really suck due to their huge interest.
How do you calculate interest of 6 months fixed deposit with the principal of 10000 and the interest rate is 8 percent?
The formula to calculate interest is as follows: Interest = Principal * No. of years * Rate of Interest / 100 So Interest = 10000 * 0.5 * 8 / 100 = 400/- The interest you will receive interest at the end of the 6 month period is Rs. 400/-
What is the formula for PIGMY deposit interest?
if i invested Rs.100 per day for 180 days @ int.5% what would be the total interest & how they calculate
How do you calculate maturity value of a note?
Find the amount of interest added at each compounding interval (also called the periodic rate).Calculate the interest added for the first time interval.Add the interest to the value of the debt security to find the ending value for the period.Use a formula to calculate maturity value.
What is different about compound interest from normal interest?
Normal interest is not calculated over a period of time. It is just the formula to calculate the interests gained. Compound interest is calculated over more time periods such as years.
How much interest would you gain from 2000 dollars at 6 percent for five years?
Assuming simple interest, just multiply 2000 dollars x (6/100) x 5. For compound interest, the formula is a bit more complicated. You would get some more interest in the case of compound interest.
