Minggu, 29 Oktober 2017
Determine the single interest
(Mirna Sahara, 160103070)
(Mirna Sahara, 160103070)
Formula Calculating Single Interest
|
Suppose we save or borrow money with initial
capital (M)
with a term (i) per period over (n) periods, the magnitude of a single interest (B) can be calculated by the formula: Interest = number of periods × interest rate per period × initial capital. B = n × i × M |
Problems example :
1). A capital of Rp1,000,000.00 is levied with a single interest rate of 2% / month. Determine the interest after 1 month, 2 months, and 5 months!
Resolution:
*). Given: M = 1.000.000 and i = 2% = 2/100
*). Determining interest after 1 month (n = 1)
B = n × i × M = 1 × 2/100 × 1,000,000 = 20,000
*). Determining interest after 2 months (n = 2)
B = n × i × M = 2 × 2/100 × 1,000,000 = 40,000
*). Determining interest after 5 months (n = 5)
B = n × i × M = 5 × 2/100 × 1,000,000 = 100,000
Vital Records :
*). From the formula B = n × i × M, the main condition is the period must be the same (same time unit).
*). The modified unit may be i or unit n so that the same.
*). Suppose a few cases below:
i). Given the interest rate (i) per year and t in the year,
then B = t × i × M
ii). The interest rate (i) per year and t in months,
then n = t/12 years,
so B = t/12 × i × M
iii). The interest rate (i) per year and t in days,
then n = t/360 years (assume 1 year = 360 days),
so B = t/360 × i × M
iv). Given the interest rate (i) per month and t in the year,
then n = 12 × t months,
so B = 12 × t × i × M
v). Given the interest rate (i) per month and t in months,
then n = t months,
so B = t × i × M
vi). Given the interest rate (i) per month and t in days,
then n = t/30 months (assume 1 month = 30 days),
so B = t/30 × i × M
Problems example :
2). Budi saves in the bank of Rp1,000,000 with a single interest rate of 6% per year. Determine the amount of interest after saving for 3 years, 3 months, and 36 days (assume 1 year = 360 days)!
Resolution:
*). Given: M = 1,000,000 and i = 6% = 6/100 per year.
*). Interest after 3 years:
n = 3 years and the unit is equal to i ie interest rate per year.
B = n × i × M = 3 × 6/100 × 1,000,000 = 180,000
*). Interest after 3 months:
n = 3 months = 3/12 = 1/4 years.
B = n × i × M = 14 × 6/100 × 1,000,000 = 15,000
*). Interest after 36 days:
n = 36 days = 36/360 = 110 years.
B = n × i × M = 110 × 6/100 × 1,000,000
Glossary
Interest = the price to be
paid to a customer who has a deposit to be paid by the borrower.
The interest rate = the
value of the loan expressed as a percentage of the principal at any agreed
time.
A single
interest = interest earned at the end of
a specified period of time which does not affect the amount of borrowed
capital.
