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Sphinxa [80]
2 years ago
12

What is the calculation used to determine the estimated annual interest amount a borrower will pay on a loan?

Business
1 answer:
PIT_PIT [208]2 years ago
7 0

The calculation used is mentioned as

Annual\ Interest\ Amount\ =\frac{Loan\ balance\ X\ Interest\ Rate}{12}.

What is Annual Interest Amount?

  • An interest rate is written as an annual percentage rate. It factors in variables like monthly payments to determine what proportion of something like the principal you'll be  paying yearly. APR is another term for the yearly rate of interest payable on investments that does not take into account the annual compounding of interest.
  • What you still owe just on mortgage principal is known as the loan balance. The loan balance is calculated as the difference here between initial mortgage balance and the sum of your principal payments. It's crucial to be aware of your loan's balance.
  • An interest rate indicates how expensive borrowing is or how lucrative saving is. Therefore, if you are a borrower, the interest rate refers to the amount you pay for borrowing money and is expressed as a percentage of the overall loan amount.

The calculation used is illustrated as :

Annual\ Interest\ Amount\ =\frac{Loan\ balance\ X\ Interest\ Rate}{12}

Learn more about Annual Interest Amount here:

brainly.com/question/2151013

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A consumer's weekly income is $250, and the consumer buys 12 bars of chocolate per week. When weekly income increases to $280, t
Vikentia [17]

Answer:

0.69

Explanation:

Given that we have the formula for calculating income elasticity of demand as the percent change in quantity demanded divided by the percent change in income, hence, we have the percent change in quantity demanded => 13 - 12 = 1 ÷ 12 = 0.083

the percent change in income => 280 - 250 = 30 ÷ 250 = 0.12

Therefore we have => 0.083 ÷ 0.12 = 0.69

Hence, the final answer is 0.69

6 0
2 years ago
What is one of the negative effects of globalization?
AfilCa [17]
I believe the answer is B! Let me know if I am right:)
4 0
3 years ago
Year P (bikinis) Q (bikinis) P (Speedos) Q (Speedos)
mojhsa [17]

Answer:

$2,950

Explanation:

assuming that year 2000 is the base year:

real GDP for 2003 = (bikini price 2000 x bikini quantity 2003) + (speedos price 2000 x speedos quantity 2003) = ($75 x 30) + ($50 x 14) = $2,950

base year's prices become the real prices of the economy, and any change in real GDP is given by changes in output

4 0
3 years ago
An unstable government is one that __________.
taurus [48]

Answer:

C

Explanation:

An unstable government is one that changes hand frequently.

<u>When something is said to be unstable, it means that thing keeps fluctuating from one situation, value, or condition to another. </u>

<em>An unstable government is one in which those at the elms of affairs keep changing at frequent intervals. With each new administrator comes new policies. Hence, there are inconsistencies in policy formulation.</em>

Correct option: C

5 0
3 years ago
Read 2 more answers
Many in the advertising industry are calling for a new way to measure a commercial’s effectiveness, _____________, an accountabi
Vsevolod [243]

ROI is the answer to this question. ROI or Return of Investment is when the capital is now gained back and the business computes the amount of profit during the time the investment was returned. Return of investment is computed by dividing the benefit of investment over the cost of investment. 

6 0
3 years ago
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