 |
| ||
| |||
|
| Math Central | Quandaries & Queries |
|
Question from melody, a student: LOAN: 1000 what is he formula of solving this and what is the answer.. |
With compound interest (almost always the case today), at the end of each month you owe what you did at the beginning plus another 2% of that - that is, (1 + 0.02) or 1.02 times what you originally owed. Then after the next month you owe 1.02 × 1.02 × the original amount, and so on.
The general formula is (1+R)N × P where P is the principle, N the number of periods, and R the rate per period.
Good Hunting!
RD
| ||
| ||
| ||
 |
 |
|
|
||
 |
||
| * Registered trade mark of Imperial Oil Limited. Used under license. | |
|
Math Central is supported by the University of Regina and the Imperial Oil Foundation.