Introduction to balance interest
Interest is money paid for the use of borrowed assets also called as “rent of money”. The interest is calculated upon the value of the money borrowed and years and then rate of interest. There are two interest can be calculated they are simple interest and compound interest. Simple interest consist only the interest amount but the balance amount we get, by subtracting the principle amount form the compound interest is the interest of that amount Having problem with Simple Interest Rate Formula keep reading my upcoming posts, i will try to help you.
Simple Interest
Formula to find the simple interest
`S.I=(P*N*R)/100`
Where,
S.I is the simple interest
P is the principle amount or amount borrowed or deposited money in bank
N is the number of years
R is the rate of interest
When money is deposited in bank, then interest is called as "rent of money". Since interest is paid to the depositer
When money is borrowed interest is paid to the lender.
Example:
To buy a computer, David borrowed $3000 at 9% simple interest calculated yearly. If he will be making monthly payments for four years,
Calculate:
(a) the amount of interest to be paid,
(b) the total amount to be paid back,
(c) the monthly payment amount.
Formula:
`S.I=(P*N*R)/100`
Where,
S.I is the simple interest
P is the principle amount or amount borrowed or deposited money in bank
R is the rate of interest
`S.I=(3000*4*9)/100`
S.I=$1080
The amount of interest to be paid back is $1080
To find the total amount, the balance amount he going to pay is interest, so add the interest amount to the principle.
The total amount to be paid back after four years is $3000 + $1080 = $4080
The monthly payment amount = `4080 /(12*4)`
=`4080/48`
= $85
Looking out for more help on System of Linear Inequalities in algebra by visiting listed websites.
Compound Interest
Formula to find the compound interest
`C.I=P(1+R/100)^n `
Where,
C.I is the compound interest
P is the principle
R is the rate of interest
n is the number of years
Let take example
P=$1000 R=10% n=2
`C.I=P(1+R/100)^n `
`C.I=1000(1+10/100)^2`
Amount=$1210
The balance amount from the amount = 1210-1000
= $210
The balance amount is the interest paid for the amount. The interest can also be calculated for the amount along with the balance amount for the upcoming days.
Interest is money paid for the use of borrowed assets also called as “rent of money”. The interest is calculated upon the value of the money borrowed and years and then rate of interest. There are two interest can be calculated they are simple interest and compound interest. Simple interest consist only the interest amount but the balance amount we get, by subtracting the principle amount form the compound interest is the interest of that amount Having problem with Simple Interest Rate Formula keep reading my upcoming posts, i will try to help you.
Simple Interest
Formula to find the simple interest
`S.I=(P*N*R)/100`
Where,
S.I is the simple interest
P is the principle amount or amount borrowed or deposited money in bank
N is the number of years
R is the rate of interest
When money is deposited in bank, then interest is called as "rent of money". Since interest is paid to the depositer
When money is borrowed interest is paid to the lender.
Example:
To buy a computer, David borrowed $3000 at 9% simple interest calculated yearly. If he will be making monthly payments for four years,
Calculate:
(a) the amount of interest to be paid,
(b) the total amount to be paid back,
(c) the monthly payment amount.
Formula:
`S.I=(P*N*R)/100`
Where,
S.I is the simple interest
P is the principle amount or amount borrowed or deposited money in bank
R is the rate of interest
`S.I=(3000*4*9)/100`
S.I=$1080
The amount of interest to be paid back is $1080
To find the total amount, the balance amount he going to pay is interest, so add the interest amount to the principle.
The total amount to be paid back after four years is $3000 + $1080 = $4080
The monthly payment amount = `4080 /(12*4)`
=`4080/48`
= $85
Looking out for more help on System of Linear Inequalities in algebra by visiting listed websites.
Compound Interest
Formula to find the compound interest
`C.I=P(1+R/100)^n `
Where,
C.I is the compound interest
P is the principle
R is the rate of interest
n is the number of years
Let take example
P=$1000 R=10% n=2
`C.I=P(1+R/100)^n `
`C.I=1000(1+10/100)^2`
Amount=$1210
The balance amount from the amount = 1210-1000
= $210
The balance amount is the interest paid for the amount. The interest can also be calculated for the amount along with the balance amount for the upcoming days.
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