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Unformatted text preview: Methods of Calculating Interest 2.1 ܫ ൌ ݅ܲܰ ൌ ሺ0.09ሻሺ$3,000ሻሺ5ሻ ൌ $1,350 2.3 Simple Interest ܫ ൌ ݅ܲܰ ܫ ൌ ሺ0.07ሻሺ$10,000ሻሺ20ሻ ܫ ൌ $14,000 Compound Interest ܫ ൌ ሾሺ1 ݅ሻ ே െ 1ሿ ൌ $10,000ሾሺ1.07ሻ ଶ ሿ ൌ $28,696.84 ME 353 HO07 9/19/2011 2 of 2 2.5 Interest Payment in Period 1 : ܫ ଵ ൌ $5,000 כ 0.09 ൌ $450.00 Principal Payment in Period 1 : ܲ ଵ ൌ $1,285.46 െ $450 ൌ $835.46 Remaining Balance in Period 1: ܴܤ ൌ $5000.00 െ $835.46 ൌ $4,164.54 End of period Principal Payment Interest Payment Remaining Balance 0 $0.00 $0.00 $5,000.00 1 $835.46 $450.00 $4,164.54 2 $910.65 $374.81 $3,253.89 3 $992.61 $292.85 $2,261.28 4 $1,081.94 $203.85 $1,179.33 5 $1,179.32 $106.14 $0.00...
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This note was uploaded on 02/14/2012 for the course ME 01953 taught by Professor Bard during the Spring '10 term at University of Texas at Austin.
 Spring '10
 BARD

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