My problem asks Calculate the simple interest for a loan of $674,100 at a rate of 6% for 30 years. but I get a huge number when I compute the simple interest formula. Then it asks to compare it with my amortization schedule interest . Which according to me is at the very bottom where it says totals the amount is $776,998.20 and asks which is bigger and why? PLEASE HELP IF ANYONE CAN!!!
once I compute the simple interest do I need to do anything else?
Are you multiplying 674,100 x .06 x 30? This should give you the simple interest. I (interest) = P (principle) R (rate) T (time)
I have an urgent math problem due tomorrow?
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Are you multiplying 674,100 x .06 x 30? This should give you the simple interest. I (interest) = P (principle) R (rate) T (time)
References :
If you borrow that money for 30 years (and pay it ALL back at the end of 30 years) then the interest is the same amount every year for 30 years.
BUT If you pay it off in monthly payments, the amount you owe gets smaller every month. and the interest is computed using a smaller amount each month.
The simple interest is larger for the reasons stated above.
References :
Interest (i = prt):
= $674,100 * 0.06 * 30
= $40,446 * 30
= $1,213,380
Answer: $1,213,380 is the SIMPLE interest at 6% per annum for 30 years. It doesn’t matter how huge in as long as the computation is correct. What is, is and can never be otherwise. Lo que es, es y nunca se puede el otro.
References :