Interest, in finance and economics, is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.For example, a customer would usually pay interest to borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the bank plays the role of the borrower.
Interest differs from profit, in that interest is received by a lender, whereas profit is received by the owner of an asset, investment or enterprise. (Interest may be part or the whole of the profit on an investment, but the two concepts are distinct from each other from an accounting perspective.)
The rate of interest is equal to the interest amount paid or received over a particular period divided by the principal sum borrowed or lent (usually expressed as a percentage).
Compound interest means that interest is earned on prior interest in addition to the principal. Due to compounding, the total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e. In practice, interest is most often calculated on a daily, monthly, or yearly basis, and its impact is influenced greatly by its compounding rate.
For this part (a),
I got ##A(t) = 500 \times 6.5^t## where t is in years. Does someone please know whhy their function is to base e? Is it because the money is compounded continuously?
Many thanks!
A journal sent me an email asking me to be an adjudicator for one article since the two reviewers disagreed on their recommendations. I accepted based on the abstract. When reading the paper I found that
(a) The author is citing me, not a big deal I guess.
but
(b) The author gives a solution...
I've done a bit of CUDA programming lately, to exercise some parallel code on my nVidia graphics card. I also ported implemented the computations in Intel AVX-512 assembly code.
The code I wrote takes a bunch (=262,144 = ##2^{18}## to be exact) of points, and calculates the slope and...
Einstein's formula for kinetic energy of a photo electron is
$$ KE = h\nu - \phi$$
$$ h\nu = KE + \phi$$
Which basically says whatever energy you provide through radiation, a part of it will be used (but I would like to say 'wasted') in overcoming the work-function (that is in cajoling that...
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The second app by the same developer is...
Hi,
I'm a current senior in college, and am applying to grad. schools for fall 2022. I'm interested in high energy theory, and I have had some research experience in ads/cft correspondence, kaluza-klein theory, computational particle physics. However, I'm not certain as to which particular topic...
An alumnus of a local high school donated $50000 to the school. The amount was invested for 3 years at 7.75%, compounded quarterly. The school has agreed to use only the interest earned on the investment to buy sports equipment. How much money will be available for sports equipment at the end of...
I'm sorry if you get this question often. I wish there was a definitive list at the top of Google searches but there wasn't.
I want to learn physics from textbooks. I know basics of Trigonometry. I went through a third of Kline's calculus and found it doable and enjoyable. I also tried Spivak...
A 30-year monthly-payment mortgage loan for 300,000 is offered at a nominal rate of 0.072 converted monthly. Thus the monthly effective interest rate is 0.006 and the calculated monthly payment is 2036.36. (Calculate the payment (PMT) on your calculator and leave it there for the moment.)
When...
I split the continuous payment stream into two separate streams:
1. one 10-year payment stream with a rate of 1000 per year
2. one 4-year payment stream with a rate of 1000 pewr year
I expressed the present value of this payment stream as:
##\begin{align}...
First, I'm not sure if this is the right forum to post this question. It's not a homework problem or any assignment. Just doing this as an exercise. Ill just post it here just in case.
I’m trying to write a c++ program to calculate the monthly interest rate 'i' given the loan amount 'P' ...
Hello there.I have a problem about interest studying mathematics.Generally I think I probably have interest in all of math but I do not know if I study a topic for example if it will be interesting to others or if I try to make questions on that topic or connect different topics on that question...
To find how much would be in the account after ten years, let the balance in the account at the start of year n be bn.
Then b1=2000
I believe that this a compound interest problem.
Common ratio r = 1.06
bn =2000*1.06^n−1
Thus, b10 =2000×1.06^9 = £3378.95791
The balance of the account at the...
Summary:: Loved Physics... decided in 7th that I wanted to become a cosmologist ( still do )... 2 yrs back when 11th Grade started, grades dropped in fav subs ( Math & Phy )… felt like I was failing in them and grades dropped further... parents helped and was able to recover Maths to as good as...
.A certain credit card company charges interest at 18¾% p.a. Reza D. had an outstanding balance of $686.25 on his credit card for 35 days, at which time he paid everything that he owed to the company. How much interest did Reza have to pay, and how much did he pay in total?
Cutting interest rates is intended to change people's behavior in favor of economic growth driving activity. In the main this necessarily involves an increased amount of leaving ones home and going to work.
The novel CV itself is not impacting the economy - it is the various policies to combat...
7yr=100% interest
21yr=300% interest
Amount=(100+300)%=400%=4 times of principal
How 7 years is equal to 100% interest?
Why in last step, we added 100% & 300%?
P = 49000; R = 57 1/7%; T = 4 yrs; SI of 2nd year = ?
R = 57 1/7% i.e 4/7. i.e Interest/Principle.
Principle; 7 corresponds to 49000.
After this how to proceed?
For me it is their behavior. How it is different from humanity. Some will seek to answer the why, but I am only interested in their ongoing goals. To a large degree that fits their behavior, since in my work, each fictional race I tailor made for a specific purpose which drives them to do what...
I'm starting to write my statement of purpose for Physics and Astronomy graduate schools, but I'm not yet dead set on which field I want to specialize in. Considering this, is it ok for me to write something along the lines of, "I want to either do field 1 with professor I or do field 2 with...
I am an incoming graduate student in Theoretical Physics at Universiteit Utrecht, and I struggle to make a choice for one of my mathematical electives. I hope someone can help me out. My main interests lie in the fields of Statistical Physics, phase transitions and collective and critical...
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I struggle to truly comprehend how so...
A very important problem in magnetostatics is the uniformly magnetized cylinder of finite length. Permanent cylindrical magnets can be modeled as having approximately uniform magnetization, and it is of much interest, given such a uniformly magnetized cylinder, to be able to calculate the...
Hi,
I've written a script-based spacetime diagram generator. I have no idea if it has any value for anyone besides myself—you may have access to better tools than I do. When I looked for spacetime generators, I only found some very limited web tools and one downloadable program that wasn't much...
For me it was something as trivial as a conceptual example of Newtons third law, the astronaut creating momentum by tossing a wrench, that gave me an eyeopener for the subject.
What ignited your spark?
Homework help please: If I want to have $60,000 in 8 years, how much would I need to deposit in the bank today if the account pays an interest rate of 9%?
If I have an investment, that is compounded at some rate ##r##, ##n## times per year, it can be written as a function as such:
$$A(t)=P\left(1+\frac{r}{n}\right)^{nt}$$
My question is in regards to the 1 here. I think I have a general idea of what it's for, but I can't really put it into...
Hello! I am returning to school but have, unfortunately, not decided what my end goal is. I originally enrolled in mechanical engineering, and dropped out to pursue a marijuana pipe dream that was unfulfilling. Now, at 19 YO going on 20, I am re-enrolled in community college to fix my GPA and...
Hello.
My question is about a specific case. Assume emitted signal ihas not been created using IQ modulation, what is the interest to rebuild an IQ signal in receiver before port-processing ?
Homework Statement
"A loan of 10,000 is repaid by twenty level installments at the end of every six months. The nominal interest rate is 8%, convertible half-yearly. Find the total amount of interest payment made over the ten-year period."
Homework EquationsThe Attempt at a Solution...
Carl Sontag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $19,500 at 8 % for 2 years. Use ordinary interest as needed.
A. Calculate the simple interest note proceeds.
B. Calculate the simple discount note...
A $17,000 T-bill is purchased at a 2.75% discount rate for 20 weeks. Find the effective rate of interest to the nearest hundredth of a percent.
My Effort:
Note: 20 weeks = 20/52 or 5/13 of a year.
Let E = effective rate of interest
E = [1 + (r/m)]^m - 1 where r is the nominal (annual )...
It's said that expectations drive the economy.
So, how do you maintain interest in something that has no immediate bearing/benefit/utility of a population? I would think the answer to that question is to manifest a 'goal', in this case being an interplanetary species or even just building a...
Hello.
I would be interested in conducting some EE DIY project contests on PF.
Arduino and such. Some examples could be on arduino.cc and hackster.io.
This thread is for me to get the numbers of users interested, so I could decide if to proceed with the idea or not.
Thanks.
I am in the process of writing a lecture out for my Graduate modeling class I teach. I normally don't write lectures out in LaTex or use PDF's because I write on the dry erase board, but if anyone is interested I wouldn't mind spending the time to type out some notes on the topic.
The topic...
Homework Statement
An investment is made at 12.5% annual simple interest. Find the number of years it will take for the cumulative value of the interest to equal the original investment?
Homework Equations
V=P(1+rt)
Where V= interest on Amount
P = Principal amount
r= interest rate
t= number...
Homework Statement
Dylan received an academic achievement prize of $2,000 from his college. He deposited this money into a savings account on July 15, 2016. If the interest accumulated on the investment when he withdraws the money on March 29, 2017 was $73.93, calculate the annual rate of...
Homework Statement
Michael's investment in his savings account matured to $4,106.32 at the end of 165 days. If the account was earning simple interest at a rate of 4.80% p.a., answer the following.
a. What was Michael's initial investment?
Round to the nearest cent
b. How much interest did...
Homework Statement
Karl invested his savings in a short-term fund that was offering a simple interest rate of 5% p.a. The maturity value of the investment at the end of 300 days was $29,152.08.
a. Calculate the principal amount invested.
Round to the nearest cent
b. Calculate the interest...
Homework Statement
Amy deposited $1000 into an account that earns 8% annual interest compounded every 6 months. Bod deposited $1000 into an account that earns 8% annual interest compounded quarterly. If neither Amy nor Bob makes any additional deposits or withdrawals in 6 months, how much more...
$6–1$ Interest rate fundamentals:
The real rate of return Carl Foster,atrainee at an investment banking firm,
is trying to get an idea of what real rate of return investors are expecting in today’s marketplace.
He has looked up the rate paid on $3-$month U.S.Treasury bills and found it to be...
The problem: Lending companies often offer better rates when you borrow a larger sum of money for a shorter period of time. A borrower is offered a loan of \$10,080 at 10% and a loan of \$7000 at 12%. If the larger loan is 6 mo shorter but the total interest payed is the same, find the length of...
Homework Statement
The problem ask to calculate the interest rate of a loan. The principal is $735 000, term is 25 years (300 months), and the repayments due is $4656.17/month.
i = interest rate, PV = present value, R = repayments
Homework Equations
PV = R x [(1+i/12)^300 - 1]/(i/12)
The...
Homework Statement
Pat invested a total of 3000$. Part of the money was invested in a money market account that paid 10 percent simple annual interest, and the remainder of the money was invested in a fund that paid 8 percent simple annual interest. If the interest earned at the end of first...
Looking for thoughts. I have recently gained an interest in Astrophysics and have considered going back to school to study the subject. I have a BS in Computer Science, and an MS in Information Technology and I believe my background is close enough to consider an MS program in Physics. However...
And I am not talking about celebrities such as someone like Stephen Hawking, who are famous scientists. I am talking about those that are people you'd never expect having an interest in mathematics, chemistry, physics, etc.