Simple Interest Financial mathematics

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Simple Interest Financial mathematics

Postby William » Tue Apr 23, 2013 4:12 am

IB Mathematical Studies SL, Simple Interest

How can we calculate the amount borrowed if the interest paid for this loan is $4,500 at a rate of 7% per annum over 48 months?

Thanks
William
 
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Re: Simple Interest Financial mathematics

Postby nicole » Tue Apr 23, 2013 4:20 am

IB Maths Studies SL, Simple Interest

The simple interest is given by the following formula

Where I is the amount of interest, P is the principal, r is the simple interest rate per annum and n is the time in years.

Regarding your question about the calculation of the simple interest we have that



Hope these help!
nicole
 
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Re: Simple Interest Financial mathematics

Postby William » Tue Apr 23, 2013 4:29 am

Thanks Nicole!
William
 
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