In: Accounting
$1,000 was borrowed 3 months ago at 1% per month. Calculate how much will be owed at the end of next month.
A.) Write a shorthand formula then calculate the value that is owed at the end of next month.
Principal amount | $ 1,000 | |
Interest for 5 Month | $ 50 | =1000*1%*5 |
Amount owed at the end of next month | $ 1,050 | =1000+50 |
or | ||
Amount owed at the end of next month = Principal x rate of interest x no. of months |
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Amount owed at the end of next month | $ 1,050 | =1000+(1000*1%*5) |