Question

A bank loans a customer $75,000 for a period of 12 years. The simple interest rate of the loan is 8.2%. What is the total (loan plus interest) amount that the customer will need to pay the bank over the 12 years?

Answer 1

If $1000 is invested now with simple interest of 8% per year. ... Find the total amount on deposit at the end of 4 years if the interest is: ... e) compounded monthly, n =12: A = 5000(1 + 0.06/12)(12)(4) = 5000(1.005)(48) = $6352.44 ... When a bank offers you an annual interest rate of 6% compounded continuously,