Introduction :
In this article we will discuss about the interest expensive equation. The “ Interest expense equation ” gives the period of the interest rate. Interest rate is not always charged yearly. It will be charged every 6 months, Monthly, some times Daily!. The “ Interest rate” contains two types, simple interest rate and Second compound interest rate. Here compound interest only denoted by the interest expense equation because compound interest gives the expensive interest amount. In summary, to calculate the simple interest rate, just find out the interest rate for one period and then multifly the number of periods. To calculate the compound interest rate or interest expense equation, first find out the interest rate for the first period, add its total and then calculate the interest rate for the next period, and so on..,
Formula
Formula for interest expense Equation:
Formula for simple interest:
simple interest SI = pnr
where
p = principal amount
n = period
r = interest rate
Formula for compound interest or interest expense equation:
compound interest CI = P (1 +`r/100` )n
Where
p = principal amount
n = period
r = interest rate
I am planning to write more post on solving linear equations with 3 variables, what are some prime numbers. Keep checking my blog.
Examples
Example For interest expense equation:
Ricky paid $2000 at 10% in finance then after 4 years what amount he will get? . Finance using simple interest and compound interest method. But ricky expect interest expense method.
Solution:
Here,
Principal amount p = $2000
Period n = 4 years
Interest rate r = 10%
Simple interest SI = pnr
SI =2000*4*10/100
= 800
Simple interest = 800
Compound interest or interest expense CI = P (1 +` r/100` )n
CI = 2000( 1+`10/100` )4
= 2000(`11/100` )4
= 2000( `11/10*11/10*11/10*11/10` )
= 2928
CI = $2928
Total amount in simple interest = 2000+800
Simple interest amount is =$2800
But the compound interest amout is $2928 .
Interest expensively gives the compound interest.
So after 4 years Ricky got $2928.
In this article we will discuss about the interest expensive equation. The “ Interest expense equation ” gives the period of the interest rate. Interest rate is not always charged yearly. It will be charged every 6 months, Monthly, some times Daily!. The “ Interest rate” contains two types, simple interest rate and Second compound interest rate. Here compound interest only denoted by the interest expense equation because compound interest gives the expensive interest amount. In summary, to calculate the simple interest rate, just find out the interest rate for one period and then multifly the number of periods. To calculate the compound interest rate or interest expense equation, first find out the interest rate for the first period, add its total and then calculate the interest rate for the next period, and so on..,
Formula
Formula for interest expense Equation:
Formula for simple interest:
simple interest SI = pnr
where
p = principal amount
n = period
r = interest rate
Formula for compound interest or interest expense equation:
compound interest CI = P (1 +`r/100` )n
Where
p = principal amount
n = period
r = interest rate
I am planning to write more post on solving linear equations with 3 variables, what are some prime numbers. Keep checking my blog.
Examples
Example For interest expense equation:
Ricky paid $2000 at 10% in finance then after 4 years what amount he will get? . Finance using simple interest and compound interest method. But ricky expect interest expense method.
Solution:
Here,
Principal amount p = $2000
Period n = 4 years
Interest rate r = 10%
Simple interest SI = pnr
SI =2000*4*10/100
= 800
Simple interest = 800
Compound interest or interest expense CI = P (1 +` r/100` )n
CI = 2000( 1+`10/100` )4
= 2000(`11/100` )4
= 2000( `11/10*11/10*11/10*11/10` )
= 2928
CI = $2928
Total amount in simple interest = 2000+800
Simple interest amount is =$2800
But the compound interest amout is $2928 .
Interest expensively gives the compound interest.
So after 4 years Ricky got $2928.
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