<em>Payment of </em><em>$ 670</em><em> with </em><em>interest </em><em>every month </em><em>8%</em>
<em>Then the payment is made for </em><em>5 years</em>
<em>If this year is the fifth year, the total payment is</em>
<em>(</em><em>$ 670</em><em> + </em><em>8%</em><em>) x </em><em>60 months</em><em> (</em><em>1 </em><em>Year </em><em>12 </em><em>Months, </em><em>12 </em><em>Months multiplied by </em><em>5</em><em>)</em>
<em>(</em><em>$ 670</em><em> + </em><em>$ 53.6</em><em> (monthly interest)) x </em><em>60</em>
<em>$ 723.6</em><em> x </em><em>60</em><em> = </em><em>$ 43,416</em>
So, the current value is $ 43,416
<h2>Further Explanation</h2><h3>2 Ways to Calculate Loan Interest
</h3>
Flat flowers
To make it easier for you to illustrate this flat interest calculation, the following is an example of the case: Mr. A applied for an unsecured loan of 240 million dollars with a repayment period of 12 months and a loan interest of 10% annually. This is an installment that must be paid by Mr. A every month.
Amount of loan: 240 million
Interest per year: 10%
Duration: 12 months
Principal installments:
$ 240 million: 12 months = $ 20 million / month
Flower:
($ 240 million X 10%): 12 months = $ 2 million
Installments every month:
$ 20 million + $ 2 million = $ 22 million
Effective interest
Thus is the illustration: Mr. B applied for a loan of $ 240 million. How many installments must be paid each month:
To calculate the interest the formula is: PL x i x (30/360)
PL: principal loan balance from the previous month
i: annual interest rates
30: number of days in a month
360: number of days in a year
Principal loan: $ 240 million
Interest: 10% per year
Credit period: 24 months
Month 1 installments:
= $ 240 million X 10% X (30 days / 360 days)
= $ 2 million
Principal installments plus interest in month 1 = $ 10 million + $ 2 million = $ 12 million.
Month installments 2:
= $ 230 million X 10% X (30 days / 360 days)
= $ 1,191,666.67
Learn More
Loan Interest brainly.com/question/13918421
The Calculated brainly.com/question/13903315
Details
Grade: Middle School
Subject: Mathematics/Business
Keyword: loan, interest, payment