A business borrows $1,000, signing a note that requires an interest rate of 12% per year and repayment of principal plus interest in a single payment at the end of 1 year. Calculate the total interest on the note. What is the amount of the single payment?
Principal amount:
The amount of principal is the amount of money which is lent to the borrower.
Interest amount:
The amount of interest is the amount which is recovered on the money lent to the borrower at a specified rate.
To calculate:
The total interest and single payment amount.
Given:
Here, as per the above given information, the principal amount is:
Now, the amount of interest is to be calculated as:
Financial & Managerial Accounting
Corporate Financial Accounting
Accounting Information Systems
Brief Principles of Macroeconomics (MindTap Course List)
Foundations of Business (MindTap Course List)
Probability and Statistics for Engineering and the Sciences
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Principles of Economics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Essentials of Business Communication (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Financial And Managerial Accounting
Fundamentals of Information Systems
Database Systems: Design, Implementation, & Management
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Principles of Information Security (MindTap Course List)
Principles of Information Systems (MindTap Course List)
A Guide to SQL
Precision Machining Technology (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Management Of Information Security
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
EBK ELECTRICAL WIRING RESIDENTIAL
Electric Motor Control
Solid Waste Engineering
Principles of Geotechnical Engineering (MindTap Course List)
International Edition---engineering Mechanics: Statics, 4th Edition
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Automotive Technology
Steel Design (Activate Learning with these NEW titles from Engineering!)
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Network+ Guide to Networks (MindTap Course List)