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If a simple interest of 4.5 percent was paid at the end of the year then find the balance at the end of the year?
The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.
How much is 10 percent interest?
10% interest means that for every dollar, you pay back $1.10. Interest is usually given as an annual rate, so you would owe that much at the end of one year. So if you borrow $100, at the end of a year you will owe $110.
How much money would you have if you put 100 in the bank for a year at 2 percent?
That depends whether the bank is giving you simple interest or compound interset and if it is compound interest is it compounded daily, monthly, quarterly, halfyearly and so on. Assuming it is simple interest, at the end of the year will have 100 + 2 = 102 dollars.
How much interest will you pay if you borrow 2000 and you have to pay it back in two and a half years at 10 percent?
If the rate is simply 10 percent, then you will have to pay 10% of 2000, which is 200. If the rate is 10% per year and you have to pay that interest at the end of each year, you will pay 200 at the end of the first year, another 200 at the end of the second year, and 100 when you repay the loan six months later. A total of 500. But if the interest at the end of each year is not paid at that time it gets added to the loan and you now have to pay interest on the interest as well as on the original loan. So at the end of the first year you will owe 2200, at the end of the second year you will owe 2420, and six months later you will owe 2541, of which 541 would be interest. Calculations: End of first year = 2000 + 10% (200) = 2200 End of second year = 2200 + 10% (220) = 2420 The interest for the third year would be 2420 x 10% = 242 but as it is only for half a year it will be half of 242 = 121. Summary of interest calculations: 200 + 220 + 121= 541
What does an inflation rate of 4 percent mean?
Interest and inflation are similar. If it is compounded annually, then you multiply the value by 1.04 each year. So... If you start with $100. At the end of the first year you have $104. At the end of the second year, you have $104*1.04 = $108.16 At the end of the third year, you have $108.16*1.04 = $112.49 At the end of the fourth year, you have $112.49*1.04 = $116.99 At the end of the fifth year, you have $116.99*1.04 = $121.67 That means, after 5 years, on average, an item that had cost $100 the first year would now cost $121.67. In general this is just averages, and nothing goes up at exactly the same rate. If you had saved the $100 in a non interest bearing cash, or your wages had not increased over time, then your original $100 now has "buying power" equivalent to $100*(100/$121.67) = $82.19.
What is accured interest?
Accreud interst is interst payable that has not been paid yet: Double entry: Debit : Say Laon Interest Account Credit: Interest Payable Account Accrued Interest: This is the interest which we have earned but not yet received. Example: If there is a contract that we will receive the interest on money landed to somebody of $ 1200 at the end of the year then after 1 month we have earned the interest of $ 100 but not yet received so we will show that $ 100 in the asset side of balance sheet as accrued interest. The above is Accrued Interest Income. Similarly, you can have Accrued Interest Expense. So, using the above example, if you were the borrower, at the end of the first month you would debit Interest Expense for $100 and credit a liability account called Accrued Interest.
What does compounded annually mean?
At the end of the year the interest is deposited in the account. The next year the interest is figured on the principal plus last year's interest.
You deposit 100 per year in a bank that offers compound interest at a rate of 6 for five years. What if your total earnings in interest are?
First calculate the total money you would have after 5 years. The first year, you start with $100; at the end of the year, you multiply this by 1.06.Similarly, the second year, you add $100 to the previous result, and again, multiply the result by 1.06. Repeat for each of the five years. Then subtract the money deposited; what remains, is the interest.
What does an interest rate of 9.45 percent mean?
For every 100 squarzels you deposit, at the end of a year you get 9 squarzels and 45 ktuglas added to your deposit.
What Year did the credit interest deduction end?
1986
Juan bought a pickup truck for 16000 He paid 1000 down and borrowed the rest on a one year note at 16 interest How much will he owe at the end of one year?
Juan Juan bought a pickup truck for 16000 He paid 1000 down and borrowed the rest on a one year note at 16 interest How much will he owe at the end of one year?bought a pickup truck for 16000 He paid 1000 down and borrowed the rest on a one year note at 16 interest How much will he owe at the end of one year?
Marl borrowed 200 at 12 percent simple interest for on year If he makes no payments that year. How much interest will he own at the end of the year?
24.00
