0
What is the answer to this problem determine the amount of interest owed after 2 years on 850 loan at 12 14 if no payments are made.?
Wiki User
∙ 6y agoWant this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
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.
The price of a bond is equal to the sum of the interest payments and the face amount of the bonds?
This is how you make money on the bonds. You will put in the money and will receive that money and the interest on it at the end of the term.
What is the settlement option of a life policy that provides periodic payments of a specified amount as long as the proceeds plus interest last?
annuity
What is a dividend calculator used for?
A dividend calculator helps you figure out your returns. You will plug in interest, rate, and the amount, and it will calculate the payments you will receive.
What are the terms of an interest only mortgage Is it equivalent to a 30-year fixed with additional principal payments?
With an interest only mortgage, the borrower pays only the interest due on the money that is borrowed. There is no money allotted in the payment amount that is reducing the principle. Interest only mortgages therefore have much lower payments but can result in negative amortization. 30-year fixed rate mortgages have money (albeit a very small amount to begin with) figured into the payment which is paying off the principle from the very first payment. Making additional payments toward the principle not only reduces the total amount of the loan, but also the amount of the total interest that will be paid to the lender. The amount of the payment may be much higher, but the result is equity (ownership). An interest only loan never leads to equity other than appreciation.
What does a student loan consolidation interest rate determine?
A student loan consolidation interest rate determines the amount of your monthly payment on your student loan. Higher interest rates would result in higher monthly payments.
What are the usury laws for contractors?
Usury laws are designed to protect consumers from excessive interest rates on loans and other types of credit. Whether your contract allows for payments over time or simply includes a late fee for overdue payments, usury laws determine the maximum amount of interest you can charge.
Which websites have a simple interest calculator?
To calculate your interest, you simply need to multiply the loan amount by the interest rate then divide by the # of payments you will make in a year (ie monthly, biweekly, ect...) To determine what your interest rate will be you need to speak with your lending institution as it varies depending on the type of loan and your credit history.
How do you calculate your car payment by hand?
Take the amount of loan and including interest charges. Then determine the length of the loan. Then divide it by the number of months it takes to complete term of loan. This will give you the monthly payments.
How do you calculate Interest rate if loan amount and monthly payments and loan amount is given?
17k 300 per month
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.
Creditor payments difference from cost of sales?
The creditor total payments will differ from the price of the sale unless you have a 0% interest loan. The interest armoritized in the amount of the total of payments. Some companys have simple interest loans, meaning that the interest is accumulated on a daily basis, rather than being financed for the full term of the loan. When payments are made in a timely manner or earlier, you will save alot on interest charges.
What do you understand by Loan Amortization?
Loan amortization is the process of paying back a loan over an extended duration of time along with the interest incurred. The interest to be paid for the amount borrowed, till the loan is completely repaid, is calculated in advance. This is divided by the total number of payments being made and added with the principal payments to arrive at an amount that consists of both the principal as well as the interest. The payments have to be made according to this amortization schedule, which is decided before the loan is issued and could be in the form of simple monthly or annual payments. Before the principal amount is issued, the terms for calculation of the interest are also fixed.
How does a person use a compounded interest calculator?
Compound interest calculators can be used for both investments and for loans. In the case of investments using the amount invested, time and interest rate you can determine the future value of that money. In the case of loans using the amount of the loan, time, interest rate and payments the total amount of interest paid for the loan (and thus earned by the lender) can be determined. Seeing the numbers in black and white can encourage many people to save more, pay back a loan faster and/or try to find better investment or loan terms.
The price of a bond is equal to the sum of the interest payments and the face amount of the bonds?
This is how you make money on the bonds. You will put in the money and will receive that money and the interest on it at the end of the term.
How do you calculate total amount of installment?
You need to start with total amount owed, total monthly payments, and annual interest.FORMULA:Payment = (Loan amount x Interest) ÷ (Payments per Year x (1 - (1 + (Interest) ÷ Payments per Year)) raised to the power of negative Payments per Year x Length of Loan)))Or, you could just use Excel and use the PMT function:PMT(interest_rate,number_payments,PV,FV,Type)interest_rate = interest rate for the loannumber_payments = number of payments for the loanPV = present value or principal of the loanFV (optional) = future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, the PMT function assumes a FV value of 0.Type (optional) = when the payments are due. Type can be one of the following values:- 0 = payments due at end of period (default)- 1 = payments due at beginning of period
Will having a cosigner lower your APR or enable you to borrow more?
The lender should be looking only at your ability to repay the loan when they determine the amount they will lend, since they assume you will be making the payments. They also want to be sure the cosigner can make the payments if you don't, but they would not combine the two financial statements to determine the amount that the two of you together could afford. They may offer a slightly better interest rate, but if the lender wants you to get a cosigner, it usually means you will not get a loan without one.
