An Interest Calculator Can Save Borrowers Money?

1 Answer

Answer :

Figuring out accrued interest on a loan can be accomplished using a simple interest calculator tool. The total amount paid in interest charges over the life of the loan can also be figured using this helpful tool. A loan calculator will show what the monthly payments are on any loan amount at any interest rate. These simple calculations can be performed online using the tool provided by finance companies and banks.Calculate Interest ChargesA simple interest loan may have an annual percentage rate of 10 percent. This means that each year the borrower must pay 10 percent of the remaining loan amount, spread over 12 months. This is in addition to the amount paid on the principal balance. As the balance decreases so does the interest owed. However the total monthly payment remains the same. Amortization is the name of the process by which this is accomplished.If an individual borrows $10,000 at 10 percent interest and the loan term is for five years, the loan calculator or interest calculator tool will show exactly how much interest is paid each year. A simple interest loan with the figures mentioned above would accrue $1,000 in interest the first year. However a 5-year, $10,000 loan at 10 percent interest will result in a total of 60 equal payments of about $212. Multiplying this total by 12 results in a first year payment of $2,544. This means that the individual paid $1,544 toward the balance of the loan and $1,000 in interest charges.Figure Total Interest Paid At Any Given TimeA simple interest calculator will show how much interest has been collected by the lender after any number of monthly installments have been paid. The borrower merely enters the loan amount and interest rate. By choosing any number of made payments the actual interest charges collected is shown immediately.Help For Car BuyersThese loan estimators and interest calculator tools are useful for those looking at different car models and comparing offers made by various lenders. Some lenders will offer a slightly lower interest rate but only if the loan term is stretched. A 60-month auto loan will cost the buyer more in interest charges over the life of the loan than will a 48-month agreement with a slightly higher annual percentage rate. Those wanting to save over the entire loan period will be able to make an informed decision after using an interest calculator.

Related questions

Description : Should lenders be allowed to make loans they don't expect borrowers to be able to repay?

Last Answer : answer:No, they should not. It is greed on their parts. Should people think responsibly and not take on more debt than they can? Of course. In the case of some of these outrageous mortgages, ... simplifying the process and forcing them to disclose in plain English would go a long way to helping.

Description : 7. What are the reasons why the banks might not be willing to lend to certain borrowers? -Economics 10th

Last Answer : The reasons why banks might not be willing to lend money to certain borrowers are given below:Some people fail to provide the required set of documents to get a loanIrregular wages and ... loansCertain borrowers are added to the list of NPAsThere is high risk in approving loans to entrepreneurs

Description : Why do the rural borrowers depend on the informal sector for credit? -SST 10th

Last Answer : The rural borrowers depend on the informal sector for credit because : (i) Absense of collateral and documentation with rural borrowers. (ii) Flexible loans in term of timelines, interest rates, procedural ... the group is regular in savings for year or two, it can avail loan from the bank.

Description : While taking a loan, borrowers look for easy terms of credit. What do is this mean? -SST 10th

Last Answer : This means low interest rate, easy conditions for repayment and less collateral and documentations requirements.

Description : How do the informal lenders take undue advantage of the borrowers helplessness? -SST 10th

Last Answer : They charge high interest on loans. As a result, the cost to the borrower of informal loans is also very high.

Description : How do the SHGs help borrowers? -SST 10th

Last Answer : The SHGs help borrowers overcome the problem of lack of collateral.

Description : Differentiate between formal and informal sources of credit. Explain problems faced by borrowers of loan from informal sources. -SST 10th

Last Answer : The moneylenders charge very high rates of interest keep no records of transactions and harass the poor borrowers.

Description : The structure of the registry which will enable quick sharing of information about unstructured borrowers and help banks fight bad loans. The registry is called _______ A. CIBIL B. Fraudelent Borrowers List C. RBI wilful Defaulter List D. Central Fraud Registry E. None of the Above

Last Answer : D. Central Fraud Registry Explanation: The Reserve Bank of India has operationalised a Central Fraud Registry (CFR). The registry will make available more information to banks at the time of starting a ... of an account. The CFR is a centralised searchable database which can be accessed by banks.

Description : Credit rating _______ A. is used to rate the borrowers while giving advances B. is used to work out performance of the employees C. is used to calculate the number of excellent audit rated branches D. is not used in any bank E. is necessary before giving promotion to employees

Last Answer : A. is used to rate the borrowers while giving advances Explanation: Credit rating is an analysis of the credit risks associated with a financial instrument or a financial entity. An assessment of the creditworthiness of a borrower with respect to a particular debt or financial obligation.

Description : The National Agricultural Insurance Scheme in its first two years of operation envisaged to cover...... (A) all crops-grown by small and marginal farmers only (B) all crops-cultivated with ... of farmers (D) only horticultural crops (E) only seven commercial crops-grown under contract farming system

Last Answer : (B) all crops-cultivated with the help of crop loans only irrespective of the size of holding of the borrowers

Description : The target group for credit cards is _________ 1. All card Holders 2. All existing borrowers 3. Individuals, with taxable income 4. All of these 5. None of these

Last Answer : All of these

Description : Underwriters build up ______ confidence in the issue of securities. a. Borrowers b. Investors c. Company

Last Answer : b. Investors

Description : Use A Debt Repayment Calculator To See How Much You Can Save?

Last Answer : A debt repayment calculator shows how much money you can save by paying extra on your debt each month. Any extra money you put on your payment each month reduces the principle. By paying just a little ... amounts will help you see how much money you can save and must quicker your debt will be paid.

Description : Where to find an interest rate calculator?

Last Answer : Yes you can find in the internet, that many website will give you interest rate calculator for make calculation for you finance its like amazon and www.ybonline.co.uk

Description : Where could I find an interest only calculator for savings?

Last Answer : Interest.com is the site where you can find comprehensive mortgage calculator, as well as the basic mortgage calc you can check the impact of savings vs mortgages, offset mortgages, overpayments.

Description : Where can I find an interest calculator for my savings account?

Last Answer : Financial institution sites such as banks offer different form of calculators to help you manage your finances. Fanniemay, Chase, and Citi bank offer a lot of calculator tools to help you.

Description : Where can I find a compounded interest calculator to help me calculate yields for a savings account?

Last Answer : You can find that type of calculator on most large banks websites such as Bank of America or Citi. They allow you to see what your money would be like after a certain time with a certain interest rates.

Description : Is a simple interest loan calculator simple?

Last Answer : Yes, usually these calculators just allow you to put in the principal amount of the loan, number of months the loan is over, and the interest rate and it helps you figure out your problems.

Description : Where can I find a CD interest calculator?

Last Answer : The best cd interest calculator can be found on cdcalc dot com. They have the best tool to determine which cd is best for your own situation to invest in.

Description : What is meant with interest payment calculator in finances?

Last Answer : The interest payment calculator lets you determine how much interest you are paying on a loan. this is a very valuable tool to use to utilize your ability to make extra house payments to see the exact number of dollars you are saving by doing so.

Description : Where can I find a good simple interest loan calculator?

Last Answer : Almost certainly there is one available on you bank's web site as most banks offer this service these days. If the one your bank provides seems too complex for you, try the calculators provided by other banks to see which one you like best.

Description : Will an interest only loan calculator help me determine my monthly payments?

Last Answer : An interest only loan calculator will not help you to determine your overall monthly payments. This will only calculate your total interest payment. To know the total cost of your loan use a loan calculator.

Description : What is an Investment Interest calculator?

Last Answer : An investment interest calculator will calculate the amount of interest that you will have to pay on an investment on a home, car, or other type of big expense.

Description : How to calculate compound interest using a monthly investment calculator?

Last Answer : A simple formula can be used to calculate the amount the dollar invested is worth over a monthly period. Use PV*(1+R)/N where PV is your present investment, R is your interest rate and N is the number of investment periods.

Description : Would it be in the interest of beings from an advanced alien civilization to save us from ourselves? Or would this "leg up" deprive us of crucial lessons we need in order to become truly civilized?

Last Answer : It would be in our interest to let you destroy yourselves. You have a long history of destroying your environment and slaughtering members of your own species en masse. When/if you acquire ... at least isolate your solar system until you learn to behave yourselves. Or until you destroy yourselves.

Description : Do you think the Governments rescue plan and banks interest rates cuts will save the economy?

Last Answer : No. I don’t think it was meant to. I think it was meant to be a confidence booster to stop the pendulum from swinging the wrong way.

Description : How much interest will I save if I pay off my loans sooner?

Last Answer : If it is simple loan then you will have to pay interest only for the days for which you have used the funds. This will result in saving interest on remaining duration of loan period. There are ... state the extra money that you have to pay in case of early repayment. Please check loan agreement.