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income before income tax plus interest expense, divided by interest expense

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What exactly is a mastercard apr?

All credit cards are required to state the amount of interest charged in an annual percentage rate, or APR. Mastercard presents the interest it charges on financed balances in a APR number.


What is the meaning of continuous compounding in finance?

Continuous compounding in finance refers to the process of calculating interest on an investment or loan where the interest is applied an infinite number of times per year, effectively compounding continuously. This means that interest is earned on both the initial principal and the accumulated interest at every possible moment. The formula for continuous compounding is expressed as ( A = Pe^{rt} ), where ( A ) is the amount of money accumulated after time ( t ), ( P ) is the principal amount, ( r ) is the annual interest rate, and ( e ) is Euler's number (approximately 2.71828). This method maximizes the amount of interest earned or owed over time compared to discrete compounding intervals.


What is the Google Sheets interest formula and how can it be used to calculate interest on a loan or investment?

The Google Sheets interest formula is PMT(rate, nper, pv). This formula can be used to calculate the interest on a loan or investment by inputting the interest rate (rate), the number of periods (nper), and the present value (pv) of the loan or investment. The result will be the periodic payment needed to pay off the loan or the interest earned on the investment.


How much interest wll be earned if 20000 is deposited in a bank at 8.5 percent per annum?

The formula to calculate interest is (p * n * r)/100 where P - Principal amount deposit - Rs. 20,000/- N - Number of years - 1 year R - Rate of interest - 8.5% So interest = Rs. 1,700/- per year.


How much interest does 8000 earn in one day at an interest rate of 6compounded daily What is the balance after a day?

To calculate the interest earned in one day on $8,000 at a 6% annual interest rate compounded daily, use the formula for daily interest: ( \text{Interest} = P \times \left( \frac{r}{n} \right) ), where ( P ) is the principal, ( r ) is the annual interest rate, and ( n ) is the number of compounding periods per year (365 for daily). Plugging in the numbers: [ \text{Interest} = 8000 \times \left( \frac{0.06}{365} \right) \approx 1.316 ] After one day, the balance would be the initial amount plus the interest earned, which is approximately ( 8000 + 1.316 \approx 8001.32 ).

Related Questions

How do you compute number of times preferred dividends are earned?

The number of times preferred dividends are earned is computed by dividing the total number of payouts by the term. Most are paid out quarterly but vary based on the market conditions.


What is the formula for Present Value Interest Factor?

Present Value Interest Factor, abbreviated as PVIF and is used to simplify present value computations, may be computed as follows: PVIF = 1 / ( ( 1 + r) ^ t) where... r = interest discount rate t = number of periods


How much interest is earned for the investment 20000 for 2 years at 5 compounded annually?

To calculate the interest earned on an investment of $20,000 compounded annually at a rate of 5% for 2 years, you can use the formula for compound interest: ( A = P(1 + r)^n ), where ( A ) is the amount of money accumulated after n years, ( P ) is the principal amount, ( r ) is the annual interest rate, and ( n ) is the number of years. Plugging in the values: ( A = 20000(1 + 0.05)^2 = 20000(1.1025) = 22050 ). The interest earned is ( A - P = 22050 - 20000 = 2050 ). Thus, the interest earned over 2 years is $2,050.


The arithmetic mean is computed by?

summing the values and dividing by the number of values


What exactly is a mastercard apr?

All credit cards are required to state the amount of interest charged in an annual percentage rate, or APR. Mastercard presents the interest it charges on financed balances in a APR number.


How is the Dow Jones industrial average computed?

It is calculated or computed by adding closed prices of stocks and then dividing by the number of stocks on the Dow Jones so that would be 30.


How can one determine the nominal interest rate for a loan or investment?

To determine the nominal interest rate for a loan or investment, you can calculate it by dividing the total interest paid or earned by the principal amount, and then multiplying by the number of periods per year. This will give you the annual nominal interest rate.


How much interest is earned on R9 000 invested for five years at 8 percent per annum and compounded annually?

For compound interest F = P*(1 + i)^n. Where P is the Present Value, i is the interest rate per compounding period, and n is the number of periods, and F is the Future Value.F = (9000)*(1 + .08)^5 = 13223.95 and the amount of interest earned is 13223.95 - 9000 = 4223.95


12 percent of what number makes 1640?

an investmntment of 4000 is made at an annual simple interest rate of 8%. How much additional money must be invested at 12% so that the total interest earned is 1640?


What is earning interest on interest?

Compound interest. This is where you work out the interest on a number, then work out the interest on top of the number with the interest added.


How much interest is earned by investing 2100 for three years at 4.5 percent compounded monthly?

The formula to calculate the present amount including compound interest is A = P(1 + r/n)nt , where P is the principal amount, r is the annual rate expressed as a decimal , t is the number of years, and n is number of times per year that interest is compounded. Then A = 2100(1 + 0.045/12)(12 x 3) = 2100 x 1.0037536 = 2402.92 The amount of interest earned = 2402.92 - 2100 = 302.92


What is a good method for estimating the value of an account after accumulating interest for a given number of years?

An interest calculator will help to estimate the amount of interest earned and the overall value of an account. These can be found free online at Bank Rate, Money, Cool Math and Worth Watch.