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Principal amount is $12000.00 and amount rate of interest is 5% for 5 years
P=$12000
I=5%
Y=12000*5%=$600
i=$600*number of years is 5 ($600*5)=$3000
interest of 5 years is $3000.
So, what is the Question? You didn't asked anything :-)
you will have to pay 229/month, total payment will equal 13724$
12600 / 5 years = 2520
monthly: 210
Question is not clear. Interest rate is reducing or simple?
If you're gonna pay annually at the end of each year, the annual payment will equal to $2771.7 and the total 5 payments will come to $13858.50. So the effective interest rate is gonna be %13.4 (high rate)
principal amount $12,000, interest 5%, period 5 years.
assuming that compounds annually, the formula is Amount = Principle * ( 1 + rate /100) ^ no. of years
==> A = 12000 * ( 1 + 5/100) ^ 5
==> A = 12000 * (1.05) ^5 = calculate it is the answer. Thanks.
Principal amount is $12000.00 and amount rate of interest is 5% for 5 years
Yearly Interest=12000*5%=$600.
Usually it is paid monthly to the bank. So $50 have to be paid each month.
