2006-11-16 13:42:41 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
First of all let me start by saying that what is Voxygen8 is saying is WRONG! The interest rate calculations he is eluding to is applied when calculating the future value of a deposit (ie future value of a CD or savings account) not for loan.
The answer you are looking for is $7,288.62 and you would need to make a payment of $1,214.77 every month to pay it off in 6 months.
Hope this helps...
2006-11-16 14:43:33 · answer #1 · answered by Anonymous · 0⤊ 0⤋
At simple interest, 14% annually over six months leaves you owing 7,490.00. If it's compound interest, then $7,504.52.
Edit: the comment referencing mortgage payments does not make these caluclations wrong. As the question is stated, there is no assumption requiring a monthly payment. Consequently, per a term loan (as was described in the question) the only unstated assumption iis the form of the interest.
2006-11-16 21:48:07 · answer #2 · answered by Voxygen8 4 · 1⤊ 0⤋
There exist financial websites which have online calculators that can help you answer that question. Go to Ask.com or Google.com and type in Fiancial Calculators, then pick one and you'll get your answer in a few quick additional steps. Good luck.
2006-11-16 21:47:56 · answer #3 · answered by tototo10011 1 · 0⤊ 0⤋