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Basic Math/Calculating interest

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Question
QUESTION: A short term loan of 50,000 is borrowed for 35 weeks at an interest rate of 18.5% p.a calculate the interest.

i am stuck please help.

ANSWER: Sure, but I am not familiar with "p.a"...what is that?

---------- FOLLOW-UP ----------

QUESTION: P. a is per anuam yearly interest

Answer
OH...OK!

One more question (forgot to ask before)...what is the compounding period?

If it is weekly, then the future value of the loan is:
50,000(1+0.185/52)^35 = 56,617.68, so the interest would be 56,617.68 - 50,000 = 6,617.68

The formula for future value is: P(1 + r/n)^(n*t)
where P = principal (amount), r=APR, n=# of compounding periods/year, t=time

Abe

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Abe Mantell

Expertise

Hello, I am a college professor of mathematics and regularly teach all levels from elementary mathematics through differential equations, and would be happy to assist anyone with such questions!

Experience

Over 15 years teaching at the college level.

Organizations belong to
NCTM, NYSMATYC, AMATYC, MAA, NYSUT, AFT.

Education/Credentials
B.S. in Mathematics from Rensselaer Polytechnic Institute
M.S. (and A.B.D.) in Applied Mathematics from SUNY @ Stony Brook

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