ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$38412.8
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$3412.8
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$2434.2
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$3214.9
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Detailed explanation-1: -Compound interest is calculated by multiplying the initial loan amount, or principal, by the one plus the annual interest rate raised to the number of compound periods minus one. This will leave you with the total sum of the loan including compound interest.
Detailed explanation-2: -To calculate your monthly car loan payment by hand, divide the total loan and interest amount by the loan term (the number of months you have to repay the loan). For example, the total interest on a $30, 000, 60-month loan at 4% would be $3, 150.
Detailed explanation-3: -The loan-to-value ratio explains the relationship between the amount of money you borrow for a car loan and the car’s value. You calculate it by dividing the loan amount by the car’s value (which may differ from the sale price) and multiplying the result by 100 to get a percentage.
Detailed explanation-4: -Formula for EMI Calculation is-P x R x (1+R)^N / [(1+R)^N-1] where-P = Principal loan amount. N = Loan tenure in months. R = Monthly interest rate. R = Annual Rate of interest/12/100.