The total amount is $ 6050, and the total interest after 8 months is $1050.
What is interest?
Interest is the financial charge for the honor of adopting a plutocrat, generally expressed as a periodic chance rate( APR).
Interest is the quantum of plutocrat a lender or fiscal institution receives for advancing out money. However, you do it in order to achieve that result or maintain that situation, If you do commodity in the interests of a particular result or situation.
There are basically three(3) main types of interest rates the nominal interest rate, the effective rate, and the real interest rate.
The nominal interest of a (one) investment or loan is simply the stated rate on which interest payments are calculated.
Here,
Period per year = 124 = 3
Total amount = amount (1 + periodic rate)period
= $6,050
Total interest = Total amount - amount
= 6050 - 5000
= $1,050
Thus,
The total amount is $ 6050, and the total interest after 8 months is $1050.
