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Interest is found using the formula: PRT/100 = PxRxT/100. the answer is then divided by 100.

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17y ago

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How is interested calculated on back taxes?

how is interest calculated on back taxes


The annual interest rate of Belinda's savings account is 8.6 and simple interest is calculated quarterly What is the periodic interest rate of Belinda's account?

2.15% Apex


The times interest earned ratio is calculated by dividing Bonds Payable by Interest Expense?

The times interest earned (TIE) ratio is actually calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense, not by dividing bonds payable by interest expense. This ratio measures a company's ability to meet its interest obligations, indicating how many times it can cover its interest payments with its earnings. A higher TIE ratio suggests greater financial stability and a lower risk of default.


To find out your balance on a savings account at a bank which measurements must be accurate?

The number of times interest is calculated for your account Total in your account Interest rate


What is the difference between dividends and interest expense?

Interest Expense is usually calculated by (Carrying Value of Liability*Yield Rate * Time). Carrying Value is the actual present value of the liability (including discounts earned, etc) Interest Expense is the money that actually goes out of the firm. Interest Paid is calculated by (Face Value of Liability*Interest Rate * Time). Interest Paid is the fair-value of dues from the firm, but is not the actual value of the liability. Interest Expense is the amount reflected in the books of the firm, and is usually higher than Interest Paid. This is because Interest Expense often includes the cost of discount amortization(this is necessary when the bond/other liability was gained at a discount. The amortization is worked into the formula above, and hence gives an amount higher than interest paid. This gives the total interest expensed by the Company.) Hope this helps. Cheers

Related Questions

Are Simple interest calculated as a?

No, they are not calculated as "a".


How does penalty interest calculated?

Penalty interest is calculated from the required and projected balance


Is the interest rate calculated annually or monthly?

The interest rate is calculated annually.


How is accumulated interest calculated?

Accumulated or compound interest is calculated by adding interest to both the principal and any interest accumulated up to the point of the calculation.


What is the interest calculated only on the principal?

simple interest


How is the interest on an auto loan calculated?

Auto loan interest payments are calculated using an amortization schedule.


Type of interest is calculated by adding the interest earned to the principle?

Compound interest


How is interest on a loan calculated?

The interest on a loan can be calculated in one of two ways - compounding or simple. Most loans in the U.S. are compounding loans, meaning that the interest is added to the principle each month before the new interest amount is calculated.


How is the interest on a loan calculated?

The interest on a loan can be calculated in one of two ways - compounding or simple. Most loans in the U.S. are compounding loans, meaning that the interest is added to the principle each month before the new interest amount is calculated.


What is different about compound interest from normal interest?

Compound interest is calculated on the initial principal plus any accumulated interest, resulting in interest earning interest over time. Normal interest, on the other hand, is only calculated on the initial principal amount and does not take into account any interest that has already been earned.


How is interest calculated for home loan in banks?

it is calculated by 6% of the cpi


How is interested calculated on back taxes?

how is interest calculated on back taxes