Menu
Pre-Calc Blogs
Please research formulas for computing loan interest. Please look for formulas that compound the interest in different ways. Please research different types of college loans: government subsidized, non-subsidized, credit union loans, and bank loans. For simple interest a formula that can be used is: P (1 +rt) P= Principal or amount of loan R= Rate of interest or percent T= Time at which the loan is applied This formula will calculate the amount of interest you will owe on a loan after how ever long you have the loan. To calculate the the percent of interest rate you would use: (i / P) x number of days To calculate compound interest the formula that can be used is: A=P(1+r/n)^(nt) A = the future value of the investment/loan, including interest P = the principal investment amount (the initial deposit or loan amount) r = the annual interest rate (decimal) n = the number of times that interest is compounded per year t = the number of years the money is invested or borrowed for Government subsidized loans: Are available to Graduate and Undergraduate students, and is based off of a student's financial need. The student's college will determine the amount of the money that can be borrowed and the amount will not exceed the financial need. The U.S. Department of Education pays the interest on a Direct subsidized loan. A direct non-subsidized loan is different in that the student is required to pay the interest rather than the U.S. Department of Education. Credit Union Loan: are loans that are not included with Federal financial aid but have a competitive interest rate as well as flexible repayment terms. Usually take within 20-25 years to pay back. Bank Loan: most common type of loan, provides medium to long term finance. The bank sets a fixed period for which the loan is provided. The interest is the timing and amount or repayments.
0 Comments
|
AuthorLindsay is in Math Class Archives
February 2017
Categories |