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Interest is typically expressed as an annual percentage rate, it is the fee paid for the
privilege of borrowing money. This fee is the price a person pays for the ability to spend money
today that would otherwise take time to accumulate.
b. The meaning of the word principal in lending terminology is amount of money originally
loaned out.
c. Simple interest is calculated only on the principal amount of a loan. Compound interest is
calculated on the principal amount and also on the accumulated interest of previous periods,
and can be regarded as interest on interest.
d. When applying for a loan I would rather the lender offer me simple interest other than
compound interest because compound interest you get a set interest and then it adds on to
what your earning.
e. yes you can calculate simple interest by taking P(1+tr).
$P=principal
r=rate,100%
t years
Chase Freedom-Earn a $100 Bonus after you spend $500 on purchases in your first 3 months
from account opening Earn a $25 Bonus after you add your first authorized user and make a
purchase within this same 3-month period 0% Intro APR for 15 months on purchases and
balance transfers. After the intro period, a variable APR of 13.99-22.99% No annual fee and
rewards never expire as long as your account is open