Appendix A: The Calculation of Interest and APR
r = The interest rate expressed as a percentage (so a rate of 0.05 used for calculations is the same as 5 percent) I = The total amount of interest that must be paid. Then the interest payable on a loan can be calculated using the follow-ing formula: I = S * r * t (1) For example, for $1,000 borrowed for a term of two years at an interest ................
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