SIMPLE vs COMPOUND INTEREST Isimp. = P * r * t where P - principal amount (the initial amount you borrow or deposit), r – annual rate of interest (as a decimal), t – number of years the amount is deposited or borrowed for. (1+ )" -1] nt Тcоmp. – 1] = P: where n – number of times the interest is compounded per year. 2. If you take a three-year simple-interest loan of 100 000 CZK at an annual interest rate of 5,5%, what would be the total amount of interest paid? Total number of Principal Interest rate Time period Total Interest paid compounding periods (CZK) (as a decimal) (number of years) (CZK) 100,000 0.055 3 3 16,500
SIMPLE vs COMPOUND INTEREST Isimp. = P * r * t where P - principal amount (the initial amount you borrow or deposit), r – annual rate of interest (as a decimal), t – number of years the amount is deposited or borrowed for. (1+ )" -1] nt Тcоmp. – 1] = P: where n – number of times the interest is compounded per year. 2. If you take a three-year simple-interest loan of 100 000 CZK at an annual interest rate of 5,5%, what would be the total amount of interest paid? Total number of Principal Interest rate Time period Total Interest paid compounding periods (CZK) (as a decimal) (number of years) (CZK) 100,000 0.055 3 3 16,500
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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