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SIMPLE INTEREST

Mmsk295y ago
Hello! My query is with regard to the simple interest computation. For example: the loan amount is $2,300,000 time is 72 months (6 years) rate is 5% the loan period is starting from Oct 2019. So what would the simple interest be per month? The year end being 31/3/2020 So this is how I did (please confirm if I'm on the right track): I = PRT I = 2,300,000*0.05*6 I = 690,000 Now what can I do to get the interest per month? Is it (690,000/72) $9,583 per month i.e as at 31/10/2019 Then, as at 30/11/2019 again $ 9,583 and so forth until the year end. Whereby the total interests during the year until 31/3/2020 would be $ 57,498 (9583 *6 months) Please help.
John MoffatJohn MoffatTutor5y ago#1
If the interest rate is 5% per year, the the monthly interest rate (if it is simple interest as opposed to compound interest) is 5/12 = 0.4167% per month. However this is not at all relevant for Paper FM and so I am bit puzzled as to why you are asking.
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