Boat Loan Percentage
Financial Math Question?
. Mark bought a Boat from his boss, Marcia. Marcia is charging 7.6% interest compounded semiannually. What is the annual percentage rate of truth for this loan? Help with how to do this and the formula
If you need information involving borrowed money and received, then we need more information, see a part PART. If only a percentage need for information regarding the loan the fee to see the party: two. FIRST reason for being: The formula for compound interest semiannually and annually, as well as other types of composition: Note: "*" means multiplication A. A = P (+ 1 / r ^ n) n * t = initial investment plus interest P = r = original investment interest rate n = type of composition t = duration of the composition of your problem, we 'R' and 'No', but nothing more. This leaves us with three missing variables. After acquire the missing other variables, you can link them to re-arranged formula of composition, to find the interest rate, 'r': r = ((LNA P / n)) / (n * t) Hope this helps! PART TWO Otherwise, the only thing you can do is this: yearly. semiannual, annual means twice a year. means Once we have this information, just take the 7.6% and multiply by 2 "to determine the true annual percentage rate: Convert all percentages to decimals: 7.6% = 0.076 Now, multiply the decimal by '2 ': 2 * 0.076 = 0.152 That means the annual percentage rate for this loan is 15.2 percent. I hope this helps!
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