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Why is more interest charged at the beginning of a loan?
The interest is based on the amount owed, therefore as payments are made the balance drops as does the interest amount (not the rate). So the interest is higher at the begining, because more money is owed at the begining.
Rolex borrowed 3200 from his credit union for 4 years he was charged 9.8 percent simple interest what was his total amount he owed the credit union?
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What is the difference between a service charge and a finance charge?
A service charge is typically a charge for a specific action that a company performs on an account or an order. A finance charge is an amount of interest that is charged on an amount of principal owed by a customer.
Why is it unwise to only pay the minimum amount on a credit card?
Only paying the minimum amount (depending on how much you owe, your interest rate, and how your minimum payment is calculated) will take you years to pay off in which time it is most likely that you will have paid more in interest than you owed to begin with. For example, $5000 balance owed with an interested rate of 20%, with a credit card whose minimum payment is calculated: interest rate + 1% of balance, therefore a minimum payment of $133.33, will take you over 23 years to pay off and by that time you will have paid over $7,700 in interest alone!
Can a Bank Credit Card Collect Triple on the amount owed?
yes depending on the interest rate and amount of monthly payment
Why is more interest charged at the beginning of a loan?
The interest is based on the amount owed, therefore as payments are made the balance drops as does the interest amount (not the rate). So the interest is higher at the begining, because more money is owed at the begining.
Can interest be charged on child support interest?
No... this is illegal..(Federal).....no intrest can be charged on owed interest.
Rolex borrowed 3200 from his credit union for 4 years he was charged 9.8 percent simple interest what was his total amount he owed the credit union?
34
What is the total amount of money owed if 1250 was borrowed for four years at 3.5 interest?
What is the total amount of money owed if $1,250 was borrowed for four years at 3.5% interest?
What will be the Journal Entry for the following Example Goods sold to Geeta for Rs. 40000 with Interest?
Assuming that the interest is charged on the amount owed by Geeta for purchasing the goods, the journal entry would be: Debit: Accounts Receivable - Geeta (Rs. 40000) Credit: Sales Revenue (Rs. 40000) Credit: Interest Income (amount of interest charged)
What is the difference between a service charge and a finance charge?
A service charge is typically a charge for a specific action that a company performs on an account or an order. A finance charge is an amount of interest that is charged on an amount of principal owed by a customer.
Is it possible to reduce debt loans ?
Unlike credit card debt, which can be settled for less than is owed, a conventional lender (bank, credit union) is not able to offer a payoff of an amount substantially less than what is owed. Credit card debt has interest added to the amount owed, and then more interest added to that (compounded). Bank loans generally are simple interest loans. Credit card companies and subsequent collection agencies that acquire the debt, are able to settle for as much as 40% percent of the amount owed, because the amount owed is accumulated interest and penalties. This is not the case with conventional loans.
Why is it unwise to only pay the minimum amount on a credit card?
Only paying the minimum amount (depending on how much you owe, your interest rate, and how your minimum payment is calculated) will take you years to pay off in which time it is most likely that you will have paid more in interest than you owed to begin with. For example, $5000 balance owed with an interested rate of 20%, with a credit card whose minimum payment is calculated: interest rate + 1% of balance, therefore a minimum payment of $133.33, will take you over 23 years to pay off and by that time you will have paid over $7,700 in interest alone!
Can a Bank Credit Card Collect Triple on the amount owed?
yes depending on the interest rate and amount of monthly payment
What is a principle amount?
The amount of a loan or investment that does not include interest. It's the amount borrowed, or the amount currently owed in a loan (including mortgages) and the amount invested (for investments.)
What is principle amount?
The amount of a loan or investment that does not include interest. It's the amount borrowed, or the amount currently owed in a loan (including mortgages) and the amount invested (for investments.)
What is the similarity between simple interest and compound interest?
Simple interest is calculated on the principal only. If you have $1,000 and earn 5% interest per year, you will receive $50 at the end of year one. At the end of year two, you will receive another $50. And on it goes. With compound interest, you earn interest on the principal plus any interest you previously earned. Looking again at the previous example, at the end of year one you will still receive $50. At the end of year two, however, you will receive $52.50. Why? Because the 5% is paid on the principal PLUS the interest you previously earned. At the end of 10 years, you'll receive $77.57. After 20 years, $126.35. With simple interest you would still receive only $50.
