SEARCH HOME
 Math Central Quandaries & Queries
 Question from Delbert, a parent: If my principal balance if $16000.00 and I paid 7% interest per annum but only kept the loan for 6 months How much interest would I owe after 6 months. Delbert, The interest is 7% per year so in one year the interest would be$16000.00 × 0.07 = $1,120.00 In half a year the interest would be half of this, that is$16000.00 × 0.07 × 1/2 = \$560.00

However if you took the loan for a year but paid it off in half a year the lender may charge you a penalty for doing so.

Harley

Math Central is supported by the University of Regina and The Pacific Institute for the Mathematical Sciences.