1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Stolb23 [73]
3 years ago
12

Why is the annual interest rate more important to a borrower who carries a balance than to a borrower who pays off the

Mathematics
2 answers:
Andrew [12]3 years ago
5 0

Answer:

Step-by-step explanation:

Who is paying is not as important as the interest rate. Either way, a lower rate will benefit the person who has the bill.

Goryan [66]3 years ago
4 0

Answer:

Interest to be paid will keep on reducing each month due to reduction of the principal amount.As a result the net interest outgo will be higher for a borrower who carries balance for the whole year compared to one who pays offs monthly.

Step-by-step explanation:

The interest outgo for any balance depends on 3 things:

  • Principal amount
  • Duration of the borrowing
  • Annual Interest Rate

In case of borrower who carries the balance, the annual interest is:

\[\frac{Principal\times 1 \times Rate}{100}\]

On the other hand, a borrower who pays the balance monthly,will have a reducing balance on which interest in computed each month. For example,

Month 1 : Interest is computed on entire amount P

Month 2: Interest is computed on \[Principal - \frac{Principal}{12}\]

Month 3: Interest is computed on \[Principal-\frac{2 \times Principal}{12}\]

and so on.

So the interest to be paid will keep on reducing each month due to reduction of the principal amount.

As a result the overall interest outgo at the end of the year will be less compared to the borrower who carries the balance.

You might be interested in
Sara wanted to put a trim on her curtains. She measured the curtains and found that they were 4.5 yards long. How many inches is
Maru [420]
The answer would be 162inches!!!!

5 0
3 years ago
Read 2 more answers
Two buses are moving towards each other, one at a speed of 40 mph and the other at a speed of 50 mph. How much closer to each ot
steposvetlana [31]
What is the starting distance
3 0
2 years ago
Read 2 more answers
Use simultaneous equations to solve the following. Three kilograms of jam and two kilograms of butter cost $29 and six kilograms
artcher [175]

Answer:

The cost of 1kg jam is $7 and the cost of 1kg butter is $4

Step-by-step explanation:

Let jam = x

butter = y

3x + 2y = 29 -----(1)

6x + 3y = 54 -----(2)

(1)×2 ->

6x + 4y = 58 -----(3)

(3)-(2) ->

y = 4

suby=4into(2)

6x + 3(4) = 54

6x = 42

x = 7

(Correct me if i am wrong)

6 0
3 years ago
15 = 3n + бр.<br> help!
Alla [95]
15 is the awnser too this one
3 0
2 years ago
How do I show my work on this problem ? I know the answer is -8,-10 because multiple people told me but I need to show my work
Simora [160]

Step-by-step explanation:

try adding them together that'll make sense duh lol

8 0
2 years ago
Other questions:
  • How to draw a graph your cost c to buy w pounds of walnuts at 6$\lb is represented by c =6w
    9·1 answer
  • Find S12 for the series 2 + 5 + 8 +...
    5·2 answers
  • The population of a city is expected to
    10·1 answer
  • Gus has a lunch food budget of $190 per month. He spends an average of $5 per day on lunch. Which of the following equations rep
    5·1 answer
  • Each Grammy has a square base of 6 in wide that's 3 in more than one third of the trophies height write an equation to find a Gr
    9·1 answer
  • 7m + 3mn when m = 8 and n = 14
    12·2 answers
  • Which theorem can be used to show that AJKL - AMNP?
    7·1 answer
  • WILL GIVE BRAINLIEST *NO LINKS*
    13·1 answer
  • Please answer the question please. The question is down below.
    10·1 answer
  • What is the value of x if |x-1)=x-2 ?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!