I am charged 10% interest every year for the balance owed on support. The payments are 326.00 a month for 15 months. What is the interest earned? I need to find out per month interest + Balance. Do I do it by 8.33% or what????
2006-07-08 13:38:22 · 5 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
It would be 10% annualy for interest earned, but I need to break it down to months so I could have the balance owed monthly
2006-07-08 13:56:56 · update #1
You're paying $572.33 interest ($4890 - 4317.67 = 572.33) after the 15 months. That's $38.16 a month.
In case you wanna check my math:
Amount + Interest = Initial amount * 1 + rate ^ compounding periods (assuming compounding and payment periods are on the same schedule which they are for you).
$326 * 15 months = $4890 = Amount + Interest
10%/12 months = .8333% = rate
$4890 = A (1.008333)^15 months= 1.13256
$4890/ 1.13256 = A = $4317.67
$4890 - 4317.67 = $572.33
$572.33/ 12 months= $38.13
2006-07-08 14:07:20 · answer #1 · answered by Mikey C 5 · 0⤊ 0⤋
That depends on how they do the interest. Some companies divide the yearly interest into the monthly payments. Others just add the interest to the unpaid amount at the end of the year.
2006-07-08 20:45:57 · answer #2 · answered by jesslb 1 · 0⤊ 0⤋
you would need the full amount owed in order to figour this out and do you only have a yearly interest rate or do you also have a monthly interest rate
2006-07-08 21:01:28 · answer #3 · answered by Meagan P 3 · 0⤊ 0⤋
Put the balance owed into your question and you will get a good answer.
2006-07-08 20:42:38 · answer #4 · answered by karen wonderful 6 · 0⤊ 0⤋
8.95% is my guess intrest times 12
2006-07-08 20:46:01 · answer #5 · answered by Paul G 5 · 0⤊ 0⤋