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1 year ago

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]1 year 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 :

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

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1 year ago

Wendy is a college student in her sophomore year. she is single with no kids, has vegetation paid for by scholarship. what type

AlekseyPX

Answer:

none of the above

Explanation:

6 0

3 years ago

Read 2 more answers

Fill in the blanks in the table. Assume that the going wage for these workers is $500 per

Alex17521 [72]

A total of 3 worker will be hired for the ranch if the going wage for these workers is $500 per week.

<h3>What is a marginal labor?</h3>

This refers to a firm increase in total production because of one additional unit of labor that is added while all other factors of production remain constant.

Given the information in the attached table, a total of 3 worker will be hired for the ranch if the going wage for these workers is $500 per week.

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6 0

2 years ago

Calculate the additional cash needed for the six months. When there is a cash shortfall (the shortfall/surplus cash calculation

lord [1]

Answer:

the numbers are missing, so I looked for a similar question:

<em>Vince's Blinds will have cash receipts of $97,000 and cash disbursements of $108,000. If its beginning cash is $5,000 and its desired reserve is $2,000, what will be its shortfall in cash for the month?</em>

You have to repeat the same procedure for the following months. The ending balance of month 1 becomes the beginning balance of month 2, and so on. For month 2 we can flip the cash receipts and disbursements:

Month 1 Month 2 Month 3

Beginning cash balance $5,000 $2,000 $5,000

Cash receipts $97,000 $108,000 ....

Cash disbursements <u>($108,000)</u> <u>($97,000)</u>

Net balance ($6,000) $13,000

Cash from loan <u> $8,000</u> <u>($8,000)</u>

Ending cash balance $2,000 $5,000

Depending on the numbers that you have, you should be able to complete the 6 months and then just add the cash from loans.

5 0

3 years ago

This year, Randy paid $29,650 of interest on his residence. (Randy borrowed $472,000 to buy his residence, and it is currently w

Eddi Din [679]

Answer:

a. $31,850

b. $29,650

Explanation:

Requirement A:

Interest on his residence is deductible = $29,650

Interest on car loan (non deductible) = $0

Margin Interest to his stockbroker (limited to $2,200) = $2,200

Total deductible = $31,850

Requirement B :

As randy has no investment he can only deduct $29,650 his interest on the home loan.

4 0

3 years ago