Interest equals principal times rate times time
Find the compound interest earned from an investment with this Compound Interest Calculator. Input principal, yearly interest rate, the amount of years the interest has been compounding, and how many times per year the interest is compounded. The formula for interest is principal times rate times time. If you borrow $1,000 at 12 % annual interest, how much interest will you have to pay for 6 months? 60 11. If payments on a house cost $7 per month per $1,000 borrowed and you think you can afford $700 for a payment, how much can you borrow? 100,000 12. Principal amounts multiplied by the interest rate and rate of time equals the amount of interest owed. b) Calculate the simple interest for a loan for $39,545 for 3 1/2 years at 7.5% interest per year. Round to the nearest cent.