Loan Repayment Calculation Formula
The total amount to be repaid for a loan is the sum of the original amount borrowed (the principal) and the accumulated interest. This is expressed as: repayment = principal + interest. Since interest is calculated as interest = principal * r, where r is the interest rate, we can substitute this into the first equation to get a more direct formula: repayment = principal + (principal * r). By factoring out the principal, we arrive at the commonly used version: repayment = principal * (1 + r).
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CORE Econ
Economics
Social Science
Empirical Science
Science
Economy
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.9 Lenders and borrowers and differences in wealth - The Economy 2.0 Microeconomics @ CORE Econ
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