# You take out a loan of \$100,000 with an annual interest rate of 5.9% that must be repaid in three (2023)

Respondent:

The principal paid in the second year will be \$33,296.

Explanation:

Of each payment of 37,341.79, part will be principal repayment and part will be interest payment. When the first 100,000 is paid (0.059*100,000) = 5,900 is interest and (37,341-5,900) = 31,441 is the principal repayment, which means in the second year the remaining principal is (100,000-150,000) = 36,000-36,854 So the payment interest in the second year will be (0.059*68,559)=4,045 and the principal paid up will be (37,341-4,045)=33,296.

## Related questions

Venzuela Company's net income for 2020 is \$50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exercisable for one share at \$6. None were exercised and 10,000 shares of common stock were outstanding during 2020. The average purchase price of Venezuela's stock in 2020 was \$20. (a) Calculate diluted earnings per share. (Answer rounded to 2 decimal places, eg \$2.55.)

Respondent:

Explanation:

GIVEN:

options issued = 1000

exercise per share = \$6

purchase price = \$20

net income = \$50,000

a) Earnings per diluted share

= (Total earnings - preferred dividends) / (shares outstanding + diluted shares)

Amount paid for shares = Options issued * Exercise price per share = 1,000 * 6 = \$6,000

Option value = Amount paid in shares / Current market price = \$6,000 / \$20 = 300

Diluted shares = Options issued - value of options = 1000 - 300 = 700

Diluted earnings per share = (50,000) / (10,000 +700) = \$4.67 per share.

b) Calculation of diluted shares 700 (same as above)

Weighted average for the holding period i.e. 3 months = 700 * 3/12 = 175 shares raised during the period.

Diluted EPS = 50,000 /(10,000 +175) = \$4.91 per share

If current assets are \$120,000, total assets are \$600,000, current liabilities are \$60,000, long-term debt is \$340,000, and total liabilities are \$400,000, what is the current ratio?

Respondent:

2

Explanation:

Current ration is a financial measure used to measure how many times a company's current assets can be used to cover its current liability.

Current Ratio = Current Assets/Current Liabilities

Current assets = \$120,000

Current liabilities = \$400,000 - \$340,000

= 60.000 \$

Current price = \$120,000/\$60,000 = 2 times

At 7% interest, you could have about \$18,000 twelve (12) years from now by depositing \$________ each year for the next twelve years, provided the deposits are made at the end of each year.

Respondent:

Explanation:

According to the scenario, the information provided is as follows:

Interest rate (r) = 7%

Future value = \$18,000

Time (t) = 12 years

Thus, we can calculate the payment to be deposited using the following formula:

FV = Pmt (((1 + r)^t - 1) ÷ r )

18.000 \$ = Pmt ((( 1 + 0,07)^12 - 1) ÷ 0,07)

Pmt = 1.006,24 \$

Therefore, the amount to be deposited each year is \$1006.24.

"Marshall Enterprises charged the following amounts of overhead to work during the year: \$20,000 to work in progress, \$60,000 to work completed but not sold, and \$120,000 to work completed and sold. At the end of the year, the Marshall Enterprise's factory overhead account has a credit balance of \$5,000, which is not a significant amount. What advance should Marshall make at the end of the year?"

Respondent:

Given,

Work in progress = \$20,000

Jobs completed but not sold = \$60,000

Jobs completed and sold = \$120,000

Marshall Enterprise's Factory Overhead account has a credit balance of \$5,000

Therefore, the journal entry is as follows:

Factory indirect a/c Dr. \$5.000

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To Cost of Goods Sold A/C \$5,000

(To record cost of goods sold)

Received a \$665 deposit from a customer who wanted his piano rebuilt in February. He leased part of the building to a bicycle repair shop. Rent of \$685 was received in January. He delivered five refurbished pianos to customers who paid \$18,675 in cash. Delivered two rebuilt pianos to customers for \$9,600 charged to account. Received \$8,000 from customers as payment on their accounts. Received an electric and gas bill of \$395 for January services to be paid in February. I ordered \$1255 worth of supplies. Paid \$2,600 on account in January. Paid \$12,200 in wages to employees in January for work done that month. Cash received and paid for supplies in (g).

Respondent:

1. Dr Cash 665

Cr Advance payment from customer 665

2. Dr Cash 685

Cr Other recipes 685

3. Dr. Cash 18675

Cr Account required 18675

4. Account Required Dr 9600

Cr sales revenue 9600

5. Dr Cash 8000

Cr Account Required 8000

6. Expenditures for public services 395

Expenses for public services payable 395

7. Dr Supplies 1255

Cr Accounts Payable 1255

8. Dr. Accounts Payable 2600

Cr Money 2600

9. Dr Salaries and salary expenses 12200

Cr Money 12200

Explanation:

Reid Company's prepaid insurance balance at the beginning and end of the year was \$1,000 and \$1,200, respectively. This will be reported in the statement of cash flows under the indirect method as: a. \$200 reduction, which will be added to net income

SI. an increase of \$200 to be deducted from net income

w. an increase of \$200 to be added to net income

Hey. decrease of \$200, which will be deducted from net income

Respondent:

SI. an increase of \$200 to be deducted from net income.

Explanation:

The difference between the opening and closing balance is an increase in the prepaid expense account.

Prepaid expense is an asset account and an increase indicates that cash has been spent to acquire the asset and is therefore considered a cash application and therefore subtracted from net income.

For an interest rate of 12% per annum compounded continuously, find (a) the nominal interest rate per year, (b) the nominal interest rate per quarter. (c) the effective interest rate per quarter and (d) the effective interest rate per month. For an interest rate of 12% per annum compounded continuously, find (a) the nominal interest rate per year, (b) the nominal interest rate per quarter. (c) the effective interest rate per quarter and (d) the effective interest rate per month.

Respondent:

a.12% per annum

b.12% per annum

w. 12.55% quarterly

Hey. 12.68% per month

Explanation:

O. The Nominal Fee is the base fee per composition which in this case is 12% which is the base fee charged.

SI. the nominal interest rate per quarter is 12% because the nominal interest rate is the base rate, meaning it is the given interest rate that is used as a reference to calculate other interest rates.

w. The effective interest rate is calculated as follows using the formula"

ieficaz = (1+ inom/n)^n -1

where effective is the real interest rate we seek per quarter.

inom is the given nominal interest rate, which is 12%.

n is the number of periods per union, so in this case 4 which is quarterly, so we substitute the values ​​into the formula above.

effective i= (1+12%/4)^4 -1 what we calculated

effective i = 0.1255 x 100 so we multiply by 100 to convert it to a percentage.

so effective = 12.55% quarterly.

Hey. we calculate the effective interest rate per month using the effective interest rate formula above:

ieficaz = (1+ inom/n)^n -1

effective = (1+ 12%/12)^12 -1 calculate with calculator

effective = 0.1268 so we multiply by 100.

effective = 12.68% compounded monthly

Up-Towner has sales of \$913,400, cost of goods sold of \$579,300, inventory of \$187,400, and accounts receivable of \$78,900. How many days, on average, does it take the company to sell its inventory, assuming all sales are on credit? A. 106.46 days B. 84.69 days C. 74.19 days D. 118.08 days E. 121.07 days

Respondent:

D. 118.08 days

Explanation:

We know,

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Days of Sales Inventory = 365 days ÷ Inventory Turns

To determine the sales inventory in days, we need to find the inventory turns.

So we know,

Inventory Turnover = Cost of Goods Sold ÷ Average Inventory

Given,

Cost of goods sold = \$579,300

Average inventory = (Beginning inventory + Ending inventory) ÷ 2

Since there is no beginning and ending inventory, the inventory remains the average inventory.

So Average Inventory = \$187,400

Plugging the values ​​into the inventory turnover formula, we get,

Inventory turns = \$579,300 ÷ \$187,400

or Inventory Turnover = 3.09 times

Therefore,

Days of Sales Inventory = 365 days ÷ Inventory Turns

or, Days of Sales Inventory = 365 days ÷ 3.09

Therefore, sales inventory in days = 118.08 days. So D is the answer.

Hanson Industries produces cough syrup in two production divisions: Formulation and Bottling. All ingredients are added to the Formulation section. Once prepared, the product is sent to the Bottling department for packaging and shipping. If Hanson Industries uses process costing, what would be the journal entry to transfer the units to the filling department?

Respondent:

1. Debt congestion account with work in process

2. Work-in-Process Letter of Credit Account

Explanation:

Process costing is a costing technique used when products are manufactured by a sequence of continuous or repetitive production processes. In process costing, direct costs are tracked and accumulated for each process, and manufacturing overheads are allocated based on predetermined criteria.

From the question, it is obvious that the item transferred from the Formulation department is still a Work in Process because the bottling department still needs to work on it or add value by packaging it before it becomes a finished product to be shipped to the customer.

Therefore, all direct costs related to Work in Process will be tracked and aggregated in the Formulation department and your share of indirect costs will be added to it. This will give us the total Work in Process cost attributable to the Formulation department that will be transferred to the Bottling department.

Assuming that the total work-in-process cost attributable to the Formulation department is XXX, the journal entry for Work in Process transferred to the Bottling Department would therefore be:

DR CR

Work in Process - Bottling XXX

Work in Process - Formulation XXX

Being the cost of Work in Process transferred from Formulation department to Bottling department.

Smith & Sons, Inc. is authorized to issue one million shares of \$1 par value common stock. The company actually sells 250,000 shares at \$5 per share. Prepare the journal entry to record the issuance of the 250,000 shares.

Respondent:

Dr. Cash \$1,250,000

Common Stock \$250,000

Paid up capital \$1000000

Explanation:

Issuing 250,000 shares brings in additional cash of 250,000 * \$5 = \$1,250,000, so the cash account is debited the same amount.

On the other hand, the common stock account also increased by \$250,000 (250,000 * \$1 per share issued) and the paid-in capital account also increased by \$1,000,000 (250,000 * \$4 per share, i.e. the excess of the issue above par)

Paid up share capital is also known as share premium account and is also a component of share capital.

Salon Secrets is a retail chain specializing in salon quality hair products. During the year, Lady Barber had sales of \$39,225,000. The company began the year with \$2,985,000 in merchandise inventory and ended the year with \$3,785,000 in inventory. During the year, Lady Barber purchased \$24,100,000 worth of merchandise inventory. The company's selling, general and administrative expenses totaled \$7,00,000 for the year. Prepare Lady Barber's income statement for the year.

Respondent:

Operating profit = \$

Explanation:

Calculation of cost of goods sold:

= Purchase during the year + Beginning inventory - Closing inventory

= 24.100.000 \$ + 2.985.000 \$ - 3.785.000 \$

= 23.300.000 \$

income status

specific value

Sales revenue \$39,225,000

LESS: Cost of goods sold \$23,300,000

Gross margin \$15,925,000

LESS: Expenses of \$700,000

Operating profit \$15,225,000

Sandy transfers land valued at \$500,000, based on \$100,000, to a newly incorporated company, Dolphin Corporation, for all of Dolphin's stock, valued at \$300,000, and a 10-year note. The note was executed by Dolphin and paid to Sandy in the amount of \$200,000. As a result of the transfer: A. The Dolphin partnership has a \$100,000 basis in landB. Sandy recognized a gain of \$400,000

Respondent:

B. Sandy recognized a gain of \$400,000.

Explanation:

Sandy transfers \$100,000 of land to Dolphin Corporation. The value of the land is \$500,000, which is transferred to Dolphin Corporation in exchange for all of the stock worth \$300,000, and the note forfeited by Dolphin worth \$200,000. The total price from Dolphin Corporation is \$500,000, which represents the value of the land transferred by Sandy. The land basis was \$100,000. Sandy can recognize a gain of \$400,000.

Choose a product or ingredient for which physical properties are more important than mechanical properties. • Describe the product or component and its function. • What are the most important qualities or characteristics? • What are the secondary qualities or characteristics that may also be desirable?

Respondent:

Explanation: a good example is an electrical wire, an electrical wire is usually coated with insulation to prevent the current from affecting the current environment. Because the mechanical function is to carry electricity. risks

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Stan owns a garage and his cousin has recently approached him desperately for work. Stan, who is not currently looking to hire anyone, is concerned about the effect of a new hire on profits. From what perspective of the family business does this concern come from?

Stan's anxiety stems from the prospect of owning the family business.

• Property
• External
• Marketing

This falls under the ownership perspective because Stan is concerned about the impact of hiring on his profits since he owns the business and therefore earns the profits from the business.

In conclusion, this is the property perspective.

Respondent:

Property

Explanation:

Stan is concerned about the impact that hiring a new employee will have on the organization's bottom line, even though the candidate is his cousin, who owns the business and is responsible for its efficient management.

At the beginning of her current fiscal year, Angela purchased a zero-coupon initial issue corporate bond for \$30,000 with a yield to maturity of 6%. Since she will receive no interest until the bond matures in 10 years, how much interest income will she report this year, assuming semiannual compounding?

Respondent:

It will report interest income of \$1,827 for this year.

Explanation:

The yield to maturity is 6%. However, bond interest is compounded semiannually. Therefore, we need to calculate the interest income for any six-monthly period and then add the two incomes together.

First half interest income

= 30.000 \$ x 0,06 x 6/12

= 900 \$

Second half interest income

= (30.000 \$ + 900 \$) x 0,06 x 6/12

= 30.900 \$ x 0,06 x 6/12

= 927 \$

Interest income for the year

= 900 \$ + 927 \$

= 1.827 \$

Respondent:

The interest that would be reported this year is \$1827

Explanation:

The loan interest for the first six months is calculated as follows:

30.000 USD*6%*6 meses/12 meses=900 USD

Thereafter, the interest for the next six months will be based on the original investment and the interest earned during the first six months, as the interest is compounded. In other words, interest is paid on the original investment and also on the interest earned on the original investment.

(\$30,000+\$900)*6%*6 months/12 months=\$927

The total interest earned on the investment in the first year is \$900 + \$927 = \$1827

EarthWear's pre-tax revenue is \$36 million (rounded). Suppose the auditors have decided that 5 percent of this benchmark is appropriate for design materiality and allocate 50 percent of it as tolerable error. SI. Determine a tolerable difference for your analytical procedure. (Enter your answer in dollars, not millions of dollars)

Explanation:

The second step in any substantive due process decision process is to determine or calculate a tolerable difference. As the expectation developed by the auditor will be slightly the same as the customer's recorded value, the auditor must decide on the amount of the difference that would require further investigation. The size of the tolerable difference depends on the importance of the account, the desired degree of confidence in the analytical procedure, the level of separation of the tested value, and the accuracy of the expectation.

In the above statement,

Tolerable distortion = 50%

Earnings before taxes = \$36 million

5% appropriate reference point for materiality design.

Therefore,

The tolerance difference for the analytical procedure:

\$36 million × 0.05 × 0.5

= 900.000 \$

Your insurance agent is trying to sell you an annuity that costs \$50,000 today. When you buy this annuity, the agent promises you that you will receive payments of \$250 per month for the next 20 years. What is the rate of return on this investment?

Respondent:

20%

Explanation:

The rate of return is expressed as a percentage of the value a person receives after investment costs over a period of time.

Rate of return (ROR) = × 100

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F.V = Future value

O.V= valor original

The future value is the future price of the annuity and the initial value is the current price.

future value per month in 20 years = \$250 × 12 × 20 = \$60,000

initial value = \$50000

RO = × 100

RO = × 100

ROR =0,2×100=20%

The rate of return on this investment is 20%

During January 2021, the following transactions occur: January 2 Purchase of space for rent one year in advance, \$10,200 (\$850/month). Jan. 9 Purchase additional supplies on account, \$4,900. January 13 Provided services to customers on account, \$26,900. Jan. 17 Receive money in advance from customers for services to be performed in the future, \$5,100. January 20 Pay cash wages, \$12,900. Jan. 22 Receive cash on accounts receivable, \$25,500. Jan. 29 Pay cash to accounts payable, \$5,400. 3. Prepare an adjusted trial balance as of January 31, 2021.

Respondent:

January 2. doctor Prepaid rent 850

Cr Rental expenses 850

January 9. Dr Supplies 4900

Cr Money 4900

January 13. Dr. Account receivable 26900

Cr Service Prescription 26900

January 17. Dr Cash 5100

January 20. Salary expenses for Dr. 12900

Cr Money 12900

January 22. doctor Cash 25500

Cr Required Account 25500

January 29. doctor Accounts Payable 5400

Cr Money 5400

Explanation:

Generally:

Prepaid Rental Expenses

DR__CR_ DR ​​_________________CR_

850 - - 850

Supply of Money

DR_________________CR_____ DR_________________CR___

4900 - 5100 - 4900

25500 - 12900

- 5400

Accounts Receivable Service Revenue

DR______________CR_______ DR_________________CR___

26900 - 25500 - 26900

DR_________________CR____ DR_________________CR___

- 5100 12900

Accounts Payable

DR_________________CR___

5400 -

Prepaid Rents 850 - 26900 Service Revenue

Money 7400 -

Claims 1400 - 5100 Down payment from customer

Commissions 4900 - 850 Rental Expenses

Accounts Payable 5400 -

Salary Expense 12900 -

Total 32850 = 32850 Total

Eli Whitney, in ________, provided the foundation for ________ in business management. 1920s? United Kingdom Statistical Sampling; US Army mass production. 19th century logistics? interchangeable parts 1890; queuing theory

Explanation:

Interchangeable parts, which became very popular in the United States of America when Eli Whitney used them to mate and assemble muskets in the early 19th century, opened the way for relatively unskilled workers to be able to produce large numbers of weapons very quickly and at a cheaper cost, and also made it much easier to repair and replace old and damaged parts.

Moorman Corporation reports the following information: Correction for understatement of prior years' depreciation expense, net of tax \$1,290,000. Dividends Declared \$960,000. Net income \$3,000,000. Retained earnings, 01/01/20, as reported \$6,000,000. How much retained earnings should Moorman report on 12/31/

Respondent:

Retained earnings at 12/31 will be \$6,750,000.

Explanation:

Retained earnings, 01/01/20 \$6,000,000

Understatement of depreciation expense \$1,290,000

Dividends declared \$960,000

Net income \$3,000,000

Retained Earnings at 12/31 = Retained Earnings, 01/01/20 - Understatement of Depreciation Expense - Dividends Declared + Net Income for the Year

Retained earnings at 12/31 = \$6,000,000 - \$1,290,000 - \$960,000 + \$3,000,000

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Retained earnings at 12/31 = \$6,750,000

## FAQs

### What is the compound interest on a three year \$100 loan at a 10% annual interest rate? ›

Summary: The compound interest on a three-year, \$100.00 loan at a 10 percent annual interest rate is \$ 33.1.

What if a loan of 30000 is to be paid in 5 annual installment? ›

Principal amount (P) = 30,000 Rs. Interest applied 5 annual installment at the rate of (R) 12% = 18,000 Rs. Total interest amount for 5 years = 30,000 + 18,000 = 48,000 Rs. Equated annual instalment = 48,000/5 = 9,600.

How do you calculate annual interest rate? ›

How do you calculate interest per year? The equation for calculating interest rates is as follows: Interest = P x R x N. Where P equals the principal amount (the beginning balance), and R stands for the interest rate (usually per year, expressed as a decimal).

What is a 30 year mortgage for \$95 000 is issued at a 9 nominal interest rate? ›

Given a 9% nominal interest rate, the effective monthly interest rate is 9% / 12 = 0.75%. In 30 years, there will be 30* 12 = 360 monthly payments. Applying the formula, the monthly payment is: \$ 95 , 000 ∗ 0.75 % 1 − ( 1 + 0.75 % ) − 360 = \$ 764.39.

What is the simple interest on \$10000 at 5% interest for 3 years? ›

Simple Interest Formula

Thus, if simple interest is charged at 5% on a \$10,000 loan that is taken out for three years, then the total amount of interest payable by the borrower is calculated as \$10,000 x 0.05 x 3 = \$1,500. Interest on this loan is payable at \$500 annually, or \$1,500 over the three-year loan term.

What is 5% 3 year compound interest? ›

Therefore, the Compound interest is ₹1261.

What is the monthly payment for a home loan of \$100000 financed at 7% over 30 years? ›

At a 7.00% fixed interest rate, a 30-year \$100,000 mortgage may cost you around \$665 per month, while a 15-year mortgage has a monthly payment of around \$899.
...
Monthly payments on a \$100,000 mortgage by interest rate.
InterestMortgage termMonthly payments
7.00%15 years\$899
7.00%30 years\$665
7.25%15 years\$913
19 more rows
Feb 7, 2023

What is the amount you will receive in three years if you loan 1000 at 5% interest? ›

The simple interest of a loan for \$1,000 with 5 percent interest after 3 years is \$ 150.

What is 6% interest on a \$30000 loan? ›

For example, the interest on a \$30,000, 36-month loan at 6% is \$2,856.

How much interest does 100000 make? ›

How much interest can \$100,000 earn in a year? If you put \$100,000 in CDs, high-yield savings or a money market account for a year, you could earn anywhere from \$3,000 to \$5,000 based on current interest rates.

### What is the formula for interest calculator? ›

The calculation is straightforward: Interest = Principal x Rate x Time. Where Principal is the initial amount invested. Rate is the interest rate charged and time is the duration of the investment.

How much is \$100 received at the end of each year forever at 10% interest worth today? ›

Present value of perpetuity:

So, a \$100 at the end of each year forever is worth \$1,000 in today's terms.

What is the mortgage payment on \$100000 for 15 years? ›

Amortization schedule on a \$100,000 mortgage
YearBeginning balanceMonthly payment
15\$64,226.46\$421.60
16\$61,050.57\$421.60
17\$57,778.09\$421.60
18\$54,406.07\$421.60
26 more rows
Mar 17, 2023

What is the current loan balance is \$118000 on a 30 year loan at 7% interest? ›

A homeowner has a current loan balance of \$118,000 on a 30-year loan at 7 percent interest with a monthly payment of \$831.63 for the principal and interest. How much of the net payment will apply to principal reduction? The answer is \$143.30.

What will be the monthly payment on a home mortgage of \$75 000 at 12 interest? ›

In this question, the principal is 75,000, monthly interest rate is 12% / 12 = 1%, and there are 360 monthly payments. Applying the formula, the monthly loan payment is: 75,000∗1%1−(1+1%)−360=771.46.

What is 6% interest on \$10000 for 5 years? ›

An investment of \$10000 today invested at 6% for five years at simple interest will be \$13,000.

What is 5% interest on \$5000? ›

If you have \$5,000 in a savings account that pays five percent interest, you will earn \$250 in interest each year.

What is 5% interest on 3000? ›

Therefore, the amount at the end is \$3828.84 if the interest is compounded annually.

What will 100 become after 20 years at 5% compound interest? ›

Therefore, the final amount after 20 years at 5% p.a. compound interest on Rs. 100 is Rs. 265.33.

How much is \$1000 worth at the end of 2 years if the interest rate of 6% is compounded daily? ›

Hence, if a two-year savings account containing \$1,000 pays a 6% interest rate compounded daily, it will grow to \$1,127.49 at the end of two years.

### What is the compound interest on 6000 in 3 years at 5% per year? ›

So, C. I. =A−P=Rs6,945. 75=Rs6,000=Rs945.

How much are payments on a 100k personal loan? ›

If you take a \$100,000 personal loan with a 12 year term and a 6.99% interest rate your monthly payment should be around \$925.

How to pay off a \$100,000 mortgage in 5 years? ›

There are some easy steps to follow to vanish your mortgage in five years or so.
1. Setting a Target Date. ...
2. Making a Higher Down Payment. ...
3. Choosing a Shorter Home Loan Term. ...
4. Making Larger or More Frequent Payments. ...
5. Spending Less on Other Things. ...
6. Increasing Income.
Apr 19, 2022

What is the monthly payment on a \$100 000 home equity loan? ›

Loan payment example: on a \$100,000 loan for 180 months at 7.30% interest rate, monthly principal and interest payments would be \$915.68 over the full term of the loan. Payment example does not include amounts for taxes and insurance premiums.

What is 5% interest on \$1000? ›

5% = 0.05 . Then multiply the original amount by the interest rate. \$1,000 * 0.05 = \$50 . That's it.

What is 5 percent interest on \$10000? ›

If you had a monthly rate of 5% and you'd like to calculate the interest for one year, your total interest would be \$10,000 × 0.05 × 12 = \$6,000. The total loan repayment required would be \$10,000 + \$6,000 = \$16,000.

What is the monthly payment on a \$5 000 personal loan? ›

Based on the OneMain personal loan calculator, a \$5,000 loan with a 25% APR and a 60-month term length would be \$147 per month.

What is 5% interest on a \$20000 loan? ›

For example, if you take out a five-year loan for \$20,000 and the interest rate on the loan is 5 percent, the simple interest formula would be \$20,000 x .05 x 5 = \$5,000 in interest.

How much is \$1000 at 6% interest? ›

Answer: \$1,000 invested today at 6% interest would be worth \$1,060 one year from now.

Is 5% interest on a loan high? ›

Bottom line. History tells us that taking out loans at 5% to 10% APR might not be a big deal if you can handle the financial obligation. However, the best interest rate is always 0%.

### Can I retire on \$500 K plus Social Security? ›

Yes, retiring at 55 with \$500,000 is feasible. An annuity can offer a lifetime guaranteed income of \$24,688 per year or an initial \$21,000 that increases over time to offset inflation. At 62, Social Security Benefits augment this income. Both options continue payouts even if the annuity depletes.

Can you live off interest of \$1 million dollars? ›

Once you have \$1 million in assets, you can look seriously at living entirely off the returns of a portfolio. After all, the S&P 500 alone averages 10% returns per year. Setting aside taxes and down-year investment portfolio management, a \$1 million index fund could provide \$100,000 annually.

Can I live off the interest of \$100000? ›

Interest on \$100,000

Even with a well-diversified portfolio and minimal living expenses, this amount is not high enough to provide for most people. Investing this amount in a low-risk investment like a savings account with a rate between 2% to 2.50% of interest each year would return \$2,000 to \$2,500.

What is the easiest way to calculate interest? ›

To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is "Simple Interest = Principal x Interest Rate x Time." This equation is the simplest way of calculating interest.

What is interest formula examples? ›

Interest, in its most simple form, is calculated as a percent of the principal. For example, if you borrowed \$100 from a friend and agree to repay it with 5% interest, then the amount of interest you would pay would just be 5% of 100: \$100(0.05) = \$5.

How much interest will I earn per month on \$1 million dollars? ›

Bank Savings Accounts

As noted above, the average rate on savings accounts as of February 3rd 2021, is 0.05% APY. A million-dollar deposit with that APY would generate \$500 of interest after one year (\$1,000,000 X 0.0005 = \$500). If left to compound monthly for 10 years, it would generate \$5,011.27.

What would the future value of \$100 be after 5 years at 10% simple interest? ›

Answer and Explanation: The \$100 investment becomes \$161.05 after 5 years at 10% compound interest.

What is the future value of \$1000 deposited for one year earning 5% interest rate annually? ›

Present Value: \$1,050 / (1 + 5%)^1 = \$1,000

The future value of \$1,000 one year from now invested at 5% is \$1,050, and the present value of \$1,050 one year from now assuming 5% interest is earned is \$1,000.

How much is \$10000 at 10% interest for 10 years? ›

If you invest \$10,000 today at 10% interest, how much will you have in 10 years? Summary: The future value of the investment of \$10000 after 10 years at 10% will be \$ 25940.

What happens if I pay 2 extra mortgage payments a year? ›

Making additional principal payments will shorten the length of your mortgage term and allow you to build equity faster. Because your balance is being paid down faster, you'll have fewer total payments to make, in-turn leading to more savings.

### How to pay off a 15 year mortgage in 5 years? ›

There are a number of ways to shorten your loan term and save a ton of money in interest on your mortgage.
1. Refinance to a shorter term. ...
2. Make extra principal payments. ...
3. Make one extra mortgage payment per year (consider bi-weekly payments) ...
Jan 8, 2021

What happens if I pay an extra \$1000 a month on my mortgage? ›

Consider another example. You have a remaining balance of \$350,000 on your current home on a 30-year fixed rate mortgage. You decide to increase your monthly payment by \$1,000. With that additional principal payment every month, you could pay off your home nearly 16 years faster and save almost \$156,000 in interest.

What is the monthly payment on a \$100000 loan at 7%? ›

At a 7.00% fixed interest rate, a 30-year \$100,000 mortgage may cost you around \$665 per month, while a 15-year mortgage has a monthly payment of around \$899.

What is the simple interest paid to borrow \$4800 for 6 months at 7%? ›

Find the simple interest paid to borrow \$4800 for 6 months at 7%. In the last example, the borrower would have to repay \$4800 + \$168 = \$4968.

How much is a \$200,000 loan at 4 for 30 years? ›

On a \$200,000, 30-year mortgage with a 4% fixed interest rate, your monthly payment would come out to \$954.83 — not including taxes or insurance. But these can vary greatly depending on your insurance policy, loan type, down payment size, and more.

How much house can I get for \$2000 a month mortgage? ›

With \$2,000 per month to spend on your mortgage payment, you are likely to qualify for a home with a purchase price between \$250,000 to \$300,000, said Matt Ward, a real estate agent in Nashville. Ward also points out that other financial factors will impact your home purchase budget.

How much is a \$800,000 mortgage payment per month? ›

Monthly payments on an \$800,000 mortgage

At a 4.5% fixed interest rate, your monthly mortgage payment on a 25-year mortgage might total \$4,427.78 a month, while a 15-year might cost roughly \$6,102.94 a month.

How much do I need to make to qualify for a 300K mortgage? ›

To purchase a \$300K house, you may need to make between \$50,000 and \$74,500 a year. This is a rule of thumb, and the specific salary will vary depending on your credit score, debt-to-income ratio, type of home loan, loan term, and mortgage rate.

What is the compound interest for 3 years at 10 per annum? ›

compounded, annually at the rate of 10% p.a. for 3 years is Rs 331. Q. Find the C.I. on 15,625 at 8% p.a. for 3 years compounded annually.

What will be the compound interest on 1000 for 3 years at 10% pa? ›

Hence the required compound interest is ₹30.301.

### What is the compound interest on 3000 for 3 years at 10% per annum? ›

The value of r is 10. Therefore, from among the options given in the question Option B is correct, which is At 10% p.a. the amount Rs. 3000 will be Rs. 3993 in 3 years compoundly.

What is the compound interest on 20000 at 5% annum for 3 years? ›

Answer: The compounded interest = 3152.5 Rs. The compounded interest = 3152.5 Rs.

How do you calculate compound interest on 10000 at a 10 percent rate for 3 years? ›

Period (n) = 3 years∴ Amount = P (1+R100)n=Rs. 10000 (1+10100)3=Rs. 10000×1110×1110×1110=Rs. 13310C.I.

What is the compound interest on 1200 for 3 years at 5% per annum? ›

1200. So principal=RS [100*1200]/3*5=RS 8000 Amount = Rs. 8000 x [1 +5/100]3 = Rs. 9261.

What is the compound interest on \$1000 for 2 years at 10%? ›

Answer: compound interest after 2yrs of 1000 Rs at the rate 10% per annum is 210 Rs.

What is the compound interest on 500 for 2 years at 10%? ›

500 at 10% p.a for 2 years compounded annually will be Rs. 105.

What would the future value of \$100 be after 5 years at 10 compound interest? ›

Answer and Explanation: The \$100 investment becomes \$161.05 after 5 years at 10% compound interest.

What is the compound interest on 1000 for 10 years at 4 per annum? ›

488.86. Hence, Compound interest would be Rs. 488.86.

What will be the compound interest on 10000 for 3 years at 2%? ›

Amount = 10,000 + 3860 = ₹ 13860.

What is the compound interest on 8000 for 3 years at 10% per annum? ›

And compound interest = Rs. (10648−8000)=2648.

### What is the compound interest on 20000 for 3 years at 10 per annum? ›

So, C.I = 26,620 - 20,000 = ₹ 6,620.

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