Question

The city is issuing bonds to raise money for a building project. You obtain a $6700 bond that pays 6% interest annually that matures in 8 years. How much interest will you earn?

Answer 1

The interest will earn is 3216

Interest Earned = Amount * Rate of Interest * Time

Interest Earned = 6700*6%*8 = $6700*\frac{6}{100}*8$

Interest Earned = 3216

Interest Calculator

The term "interest" refers to the additional revenue received by the investor over and above the investment or the additional debt owed by the borrower over and above the amount borrowed. Simple interest and compound interest are the two different kinds of interest. The sorts of interests are covered in further detail in the interest formula. Let's explore the interest formula in further detail and go through several cases.

Interest Formula: What is it?

Simple interest and compound interest are both included in the interest formula. Interest is the cost a borrower pays a lender for a loan. This additional sum, or the interest, must be paid in addition to the loan itself. The Simple Interest Formula and the Compound Interest Formula are both discussed in the interest formula Compound Interest Formula. The interest formula for both is

Simple Interest = P × R × T

Compound Interest = $P(1 + r/n)^{nt}- P$

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