Answer:
$374,080.00
Step-by-step explanation:
You want to calculate the interest on $40000 at 5.8% interest per month after 12 year(s).
The formula we'll use for this is the simple interest formula, or:
[tex]I=P*R*T[/tex]
Where:
P is the principal amount, $40000.00.
r is the interest rate, 5.8% per month, or in decimal form, 5.8/100=0.058.
t is the time involved, 12....year(s) time periods.
Since your interest rate is "per month" and you gave your time interval in "year(s)" we need to convert your time interval into "month" as well.
Do this by multiplying your time, 12 year(s), by 12, since there's 12 months in 1 year.
So, t is 144....month time periods.
To find the simple interest, we multiply 40000 × 0.058 × 144 to get that:
The interest is: $334080.00
Usually now, the interest is added onto the principal to figure some new amount after 12 year(s),
or 40000.00 + 334080.00 = 374080.00. For example:
If you borrowed the $40000.00, you would now owe $374080.00
If you loaned someone $40000.00, you would now be due $374080.00
If owned something, like a $40000.00 bond, it would be worth $374080.00 now.
