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Formula to find simple interest for a loan EX Eleanor Chin borrowed $6000 at 9.2% interest for 11 months |
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What formula do you use to find the Future or Maturity value for Simple Interest? When given present value, rate of interest, time period and solving for future value |
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| What does P and A represent in Simple Interest? |
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| P represents the amount at the beginning of the period, A represents the Value at the end of the period |
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What is the formula to find present value of $32,000 in 4 months at 9% |
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| When findin the actual rate of interest paid what formula do you use and how do you solve it |
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Use I=Prt and let r be the rate of interest Solve it by r=I/Pt |
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| What equation do you use to find out how much money is an account after nine years if $7000 is deposited in an account that pays 4% interest compounded annually |
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A=P(1+i)^n n = represents the amount of periods |
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What formula do you use to find
If a $16,000 investment grows to $50,000 in 18 yrs. What is the interest rate assuming annual compounding. |
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P(1 + i)^n=A 16000(1+i)^18=50000 solve for i |
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| What is the formula to find a future amount of money invested at an annual rate of 4% compounded CONTINUOUSLY for 5 yrs |
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What is the formula to find an effective rate of a given interest Ex 4% compounded semiannually |
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What is the equation to find the future value of an ordinary annuity Example Chris Webber is an athlete who feels that his playing career will last 7 years. To prepare for his future, he deposits $122,000 at the end of each year for 7 years in an account paying 6% compounded annually. How much will he have on deposit after 7 years? |
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| What is the equation to amortization payments |
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| How do you find the ammortize payments remaining balance |
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| R [ ((1-(1+i)^-(n-x) / i ] |
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