Comparing Simple And Compound Interest Calculators?

Comparing Simple And Compound Interest Calculators?
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An interest calculator is an electronic/web-based formula that calculates things like how much interest is payable on a principal debt, what monthly interest payments will be and what percentage of any monthly payment on a debt will be allocated towards interest payable.There are two types of interest calculators: Simple and compound. The difference between simple and compound interest is fairly easy to understand, and, while simple interest is calculated on the principal debt only, compound interest is calculated on the principal debt plus the interest already accrued as at the date of the interest calculation.Given the basic difference between the two types of interest, it stands to reason that there will be two different calculators: one for gross simple interest payable and one for gross compound interest payable. In order to calculate the total interest payable, the simple interest calculator will use factors like the amount of the principal debt - the total amount borrowed - the interest percentage offered by the bank or credit union and the number of years the account holder wants to pay the debt off in. The compound interest calculators, on the other hand, while also making use of factors like the number of years needed to pay off the debt and the interest rate, will, when calculating the gross compound interest payable, use, as a total debt, the principal debt plus interest accrued to date instead of just the principal debt. Another factor that must be taken into account when using a compound interest calculator is how many times a year the interest will be compounded, which can be translated as "how many times a year will the interest amount be added to the principal debt to create the gross principal debt on which further interest will be charged".Simple and compound interest calculators can be used to calculate the interest payable on all types of debts. They are, however, most often utilized by mortgage loan companies and auto finance companies when customers are contemplating purchasing a house or a car in order to determine what their total debt - principal plus interest - will be.
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Related questions

An amount becomes 160% of itself in 5 years through simple interest. At the same rate of interest, how long will it take for the amount to more than double itself if we use compound interest? a) 7 b) 8 c) 9 d) 10 e) cannot be determined

Description : An amount becomes 160% of itself in 5 years through simple interest. At the same rate of interest, how long will it take for the amount to more than double itself if we use compound interest? a) 7 b) 8 c) 9 d) 10 e) cannot be determined

Last Answer : Answer: a)

The compound interest accrued on an amount of Rs. 25,500 at the end of three years is Rs. 8,440.5.What would be the simple interest accrued on the same amount at the same rate in the same period? a) Rs. 5,450/- b) Rs. 8,750/- c) Rs. 4,350/- d) Rs. 3,650/- e) Rs. 7,650/-

Description : The compound interest accrued on an amount of Rs. 25,500 at the end of three years is Rs. 8,440.5.What would be the simple interest accrued on the same amount at the same rate in the same period? a) Rs. 5,450/- b) Rs. 8,750/- c) Rs. 4,350/- d) Rs. 3,650/- e) Rs. 7,650/- 

Last Answer : A = P + Interest = 25500 + 8440.5 = 33940.5 A = P + 1 + (R/100)^3 33940.5 = 25500 a + R/100)^3 a + R/100)^3 = 33940.5 / 25500 a + R/100)^3 = 1.331 a + R/100)^3 = ... R = 10% Simple Interest = Principle Rate Time / 100 = 25500 10 3/100 = 7650 Answer: e)

Simple interest on a certain sum of money for 4 years at 5% per annum is half the compound interest on Rs. 8000 for 2 years at 10% per annum. The sum placed on simple interest is: a) Rs.4200 b) b)Rs.4250 c) Rs.5250 d) Rs.5200 e) Rs.4000

Description : Simple interest on a certain sum of money for 4 years at 5% per annum is half the compound interest on Rs. 8000 for 2 years at 10% per annum. The sum placed on simple interest is: a) Rs.4200 b) b)Rs.4250 c) Rs.5250 d) Rs.5200 e) Rs.4000

Last Answer : a C.I = 8000 * (1+(10/100))2 –8000  = 8000 *110/100 * 110/100 – 8000 = 9680 – 8000 = Rs.1680 Therefore, S.I = C.I / 2 = 1680 / 2=Rs. 840 840 = sum * 4 * 5 / 100 :. Sum = Rs.(840 * 100)/ (4 *5) = Rs.4200

Difference between the compound interest and the simple interest accrued on an amount of Rs. 18000 in two year is Rs. 405. What was the rate of interest? 1) 14% 2) 16% 3) 12.5% 4) 15% 5) 15.5%

Description : Difference between the compound interest and the simple interest accrued on an amount of Rs. 18000 in two year is Rs. 405. What was the rate of interest? 1) 14% 2) 16% 3) 12.5% 4) 15% 5) 15.5%

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Description : Microprocessors can be used to make a. Computer b. Digital systems c. Calculators d. All of the above

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Description : When Sharp first introduced its line of reverse notation calculators, it set the price quite high; it has lowered the price as competitors have entered the market. The pricing strategy used by Sharp is called: A)customary pricing. B)penetration pricing. C)price skimming. D)prestige pricing.

Last Answer : C)price skimming.

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Description : Is there a benefit to making a principle only payment on a simple interest loan?

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Can a loan that charges a fee of any kind be considered a "simple interest" loan?

Description : Can a loan that charges a fee of any kind be considered a "simple interest" loan?

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15. Find the simple interest and the amount when: (a) Principal = Rs 6400, rate = 6% p.a. and time = 2 years (b)Principal = Rs 2650, rate = 8% p.a. and time = 212212 years?

Description : 15. Find the simple interest and the amount when: (a) Principal = Rs 6400, rate = 6% p.a. and time = 2 years (b)Principal = Rs 2650, rate = 8% p.a. and time = 212212 years?

Last Answer : when followed by a vowel sound or used as an emphatic form

The hundredth part of the product of the principal (P), time (T), and rate (R) is simple interest (I), then I is _____express the statement using symb

Description : The hundredth part of the product of the principal (P), time (T), and rate (R) is simple interest (I), then I is _____express the statement using symb

Last Answer : The hundredth part of the product of the principal (P), time (T), and rate (R) is simple ... (I), then I is _____express the statement using symbols.

When Valentina invested 6500 in a savings account with a yearly interest of 4 for 7 years how much simple interest did she earn?

Description : When Valentina invested 6500 in a savings account with a yearly interest of 4 for 7 years how much simple interest did she earn?

Last Answer : 1,820-apex test answer

What is the simple interest of 7 per annum on 180000?

Description : What is the simple interest of 7 per annum on 180000?

Last Answer : Feel Free to Answer

If 7558.20 in interest was earned after 12350 was invested at a simple interest rate of 7.65. How long (in years) was the money invested?

Description : If 7558.20 in interest was earned after 12350 was invested at a simple interest rate of 7.65. How long (in years) was the money invested?

Last Answer : It was eight years.

How is simple interested calculated differently from coupounded interest?

Description : How is simple interested calculated differently from coupounded interest?

Last Answer : With compound interest the interest amount is added to the principle and then earns interest as well. This is usually expressed as an annual percentage rate (APR). Simple interest is not added to the principle and does not earn further interest and is used rarely.

Is a simple interest loan calculator simple?

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.

Where can I find a good simple interest loan calculator?

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.

Using simple interestWhat amount produces a loan of $1,000 to 9 months, at 6% annual interest What is the interest I of the previous problem transaction (problem 1)?

Description : Using simple interestWhat amount produces a loan of $1,000 to 9 months, at 6% annual interest What is the interest I of the previous problem transaction (problem 1)?

Last Answer : Hey, if someone reads this, don't worry about it I already found the answer but thanks for worrying.