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Finding Total Interest
- Thread starter Tess204
- Start date
D
Deleted member 4993
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Tess204 said:Hi, I'm looking for a way how to do this question;
A credit card company charges 10% per annum. simple interest. What is the total interest earned on a $1200 loan at the end of 3 years?
What equations have been taught to calculate parameters of compound interest?
Please share your work with us, indicating exactly where you are stuck - so that we may know where to begin to help you.
The equations that have been taught to us were;
The simple and compound interest equations:
SImple being: I=P*r*t
Compound: A=P(1+r/n)^n*t
I missed the entire lesson, and I have been trying to search some examples, I have to complete a whole book full of these. And whenever I try other equations, they do not come out as any of the choices (its a multiple choice assignment)
The simple and compound interest equations:
SImple being: I=P*r*t
Compound: A=P(1+r/n)^n*t
I missed the entire lesson, and I have been trying to search some examples, I have to complete a whole book full of these. And whenever I try other equations, they do not come out as any of the choices (its a multiple choice assignment)
D
Deleted member 4993
Guest
Tess204 said:Hi, I'm looking for a way how to do this question;
A credit card company charges 10% per annum. simple interest. What is the total interest earned on a $1200 loan at the end of 3 years?
I'll do a similar but different problem.
A credit card company charges 12% per annum. simple interest. What is the total interest earned on a $2000 loan at the end of 5 years?
Simple interest formula is:
Total interest = Amount * rate * time = 2000 * (12/100) * 5 = 1200 dollars
Now follow the exact same steps for your problem.