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Which of these is the correct formula for calculating interest on a loan?
Wiki User
∙ 11y ago
interest = prinsciabl x rate x time
Wiki User
∙ 11y ago
Mary Miti
Interest = Rate x Principal x Time
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How do home loan calculators work?
Home loan calculator is an initiative in the financial sector. You can easily calculate EMI with the help of home loan calculator. There is a formula involved in calculating the EMI, with the help of which you can get the EMI amount. But it is a tedious task, so to reduce the effort and time lenders have introduced this loan calculator. You need to put the principal amount of the loan, tenure and the rate of interest of the loan, to get the EMI amount. You can calculate your EMI amount before even applying for a loan. This will help you to get an idea of your loan repayment capability.
What is low interest loan?
The loan whose interest rate is low is called low interest loan. If you got a unsecured loan @ low interest rate then it would be low interest loan for you.
How can you reduce interest on high interest loan?
Repay the loan with the funds raised from a lower interest loan.
What does APR stand for?
Usually it stands for Annual Percentage Rate (used to calculate the amount of interest charged on the balance of a credit card or loan). If that doen't make sense in relation to where you saw it then it may stand for something else. Also: The nominal rate of interest is the rate used when calculating the interest expense on your loan. That's what most people consider to be the interest rate on their loan. The annual percentage rate (APR) on a loan includes some of the costs involved in procuring the loan and is meant to provide the consumer with an effective rate to use when comparing loans.
Can payday loan interest be reported on your income taxes?
No. Deductible interest includes student loan, investment, and qualified residence interest. Payday loan interest is considered personal interest. Personal interest isn't deductible.
Definition of simple interest?
Simple interest is a term that is used for quickly calculating the interest charge on a loan.
How does one calculate the interest rate on a loan?
Calculating the interest rate on a loan isn't that difficult. A person will need to take the principal amount and multiply it by the term of the loan and the annual percentage rate.
How important is your credit score when getting a car loan?
When one is trying to get a car loan, the importance of the credit score is mostly important when calculating the interest of the loan. A better credit score means a lower 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.
What is the formula for calculating Equated annual Instalment?
Equated Annual Installment = Loan Amount/PVIF(Interest&Time Period) Ex : Loan Amount Rs. 5,00,000 Interest Rate 8% Time period 5 equal instalments The Answer will be EAI = 5,00,000/PVIF(8%.5) This Implies EAI = 5,00,000/3.9927 The Answer will be EAI = 1,25,228.20
Where can I find a mortgage loan calculator?
There are mortgage loan calculators available at several websites. The website for Bank Rate has a mortgage loan calculator along with the website mortgagecalculator.org. Local banks can often help with calculating interest on a mortgage.
Can anyone help create a formula to find a rate of interest based on annual salary and length of loan and size of loan?
Your annual salary is a relevant factor when you are deciding how much money you can afford to borrow, but it does not affect the interest rate or the total interest paid. There is no reason why a lender would alter the interest rate because of the annual salary of the borrower. So, an interest formula would only be based upon the length and size of the loan.
How do home loan calculators work?
Home loan calculator is an initiative in the financial sector. You can easily calculate EMI with the help of home loan calculator. There is a formula involved in calculating the EMI, with the help of which you can get the EMI amount. But it is a tedious task, so to reduce the effort and time lenders have introduced this loan calculator. You need to put the principal amount of the loan, tenure and the rate of interest of the loan, to get the EMI amount. You can calculate your EMI amount before even applying for a loan. This will help you to get an idea of your loan repayment capability.
What is low interest loan?
The loan whose interest rate is low is called low interest loan. If you got a unsecured loan @ low interest rate then it would be low interest loan for you.
What formula determines the interest amount on a loan?
To find the APR which is the true rate of interest charged for a loan, use the following formulawhere APR is the annual percentage rate,i is interest (finance) charge on the loan,P is principal or amount borrowed, andn is number of months of the loan. APR = 72i__________________3P(n + 1) + i(n - 1)
How can you reduce interest on high interest loan?
Repay the loan with the funds raised from a lower interest loan.
What does APR stand for?
Usually it stands for Annual Percentage Rate (used to calculate the amount of interest charged on the balance of a credit card or loan). If that doen't make sense in relation to where you saw it then it may stand for something else. Also: The nominal rate of interest is the rate used when calculating the interest expense on your loan. That's what most people consider to be the interest rate on their loan. The annual percentage rate (APR) on a loan includes some of the costs involved in procuring the loan and is meant to provide the consumer with an effective rate to use when comparing loans.
