What difference does compounding make? You have a $10 000 debt. Calculate the interest and amount for each. Interest rate Compounded Time Interest Amount 7% Simple (n/a) 3 years 7% Annually 3 years 7% Semi-annually 3 years 7% Monthly 3 years 7% Daily 3 years
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. What difference does compounding make?
You have a $10 000 debt. Calculate the interest and amount for each.
|
Interest rate |
Compounded |
Time |
Interest |
Amount |
|
7% |
Simple (n/a) |
3 years |
||
|
7% |
Annually |
3 years |
||
|
7% |
Semi-annually |
3 years |
||
|
7% |
Monthly |
3 years |
||
|
7% |
Daily |
3 years |
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- The following loan is a simple interest amortized loan with monthly payments. $7000, 7%, 4 years (a) Find the monthly payment. (Give your answer to the nearest cent.) Payment $189.58 (b) Find the total interest for the given simple interest amortized loan. (Give your answer to the nearest cent.) Total interest $ 2100 XUSE THE FORMULA TO CALCULATE THE MONTHLY PAYMENT FOR THE FOLLOWING: AMOUNT BORROWED INTEREST RATE TERM (YEARS) $10,000 7.2% 4 $13,000 11% 4 $18,000 8% 6 $11,000 9% 6For the given principal, interest rate, and time period, determine the amount of interest that would be earned in an account paying simple interest. Also determine the amount of interest that would be earned in an account paying compound interest with interest compounded annually. Determine how much more interest would be earned in the account paying compound interest. Round to the nearest cent. Principal: $810 Rate: 4% Years: 17
- The following loan is a simple interest amortized loan with monthly payments. $5000, 7 1/2%, 4 years (a) Find the monthly payment. (Give your answer to the nearest cent.)Payment $ (b) Find the total interest for the given simple interest amortized loan. (Give your answer to the nearest cent.)Total interest $Fl in an amortization table (in dollars) for a loan of $8,500 to be paid back over 2 years, at an annual interest rate of 1.3, compounded quarterly. For eech value in the table, round your answer to the nearest cent and use this value to calculate the next value. Payment number Payment amount Payment amount to interest Payment amount to debt Outstanding principal S0.500 13 14The following loan is a simple interest amortized loan with monthly payments. $155,000, 9- 9-%, 30 years 2 (a) Find the monthly payment. (Give your answer to the nearest cent.) Payment $ (b) Find the total.interest for the given simple interest amortized loan. (Give your answer to the nearest cent.) Total interest | Enter a number.
- You have taken a loan of $78,000.00 for 20 years at 4.9% compounded quarterly. Fill in the table below, rounding all values to the nearest cent. Note that the principal column is listed before the interest column even though the interest calculation is done first. Many lending institutions use this order in the amortization schedules they provide to their customers. Payment number Payment amount Principal Amount Interest 0) 1) 2) 3) $ S $ $ s Balance $78,000.00 $Which of the following give the highest amount of interest for depositing the same amount of money for 2 years? 5% annual interest rate, no compounding ○ 4.94% annual interest rate, compounding semi-annually 4.92% annual interest rate, compounding monthly 4.9% annual interest rate, compounding daily 4.88% annual interest rate, compounding continuouslyAn amount of P dollars is borrowed for the given length of time with the amount F due at the end of the given length of time. Find the annual simple interest rate r. (Round your answer to two decimal places.) P = $2400, F = 3744.00, 7 years %D r = 22.28 X %
- Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Rate Payment 6.7% $468.39 Fill out the amortization schedule below. Interest Paid $42.28 Annual Interest Rate 6.7% Interest Paid $42.28 $ (Round to the nearest cent as needed.) Payment $468.39 Paid on Principal $426.11 Paid on Principal $426.11 $ Balance $7,150.14 Balance $7,150.14 $If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %Investigate the effect of the term on simple interest amortized auto loans by finding the monthly payment and the total interest for a loan of $13,000 at 8 and 7/8% interest if the term is the following. (Round all answers to the nearest cent.) (a) 3 years. Payment $ Total interest $ (b) 4 years. Payment $ Total interest $ 4615 (c) 5 years. Payment Total interest Enter a number. XX XX XX