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Calculating Interest Independent Practice Worksheet Form

Calculating Interest Independent Practice Worksheet Form

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Instructions and help about calculating interest answer key

let's discuss some app problems that might involve interest calculations let's say a problem says that a buyer purchased a property obtaining an 80 percent loan the monthly interest paid in the first month was $800 the interest rate on the loan was 5% interest rates are always quoted on an annual basis what would be the total sale price on this property to begin with we have two percentages in our math problem which tells us to draw two tees let's begin with the monthly interest of $800 since the annual interest rate is 5% we need to equate that with the annual interest paid so we will take the $800 times 12 months to arrive at 9600 dollars total interest for the first year we then go to our T formula the interest rate on the loan was 5% and the percentage always goes on the bottom right so 5% goes on the bottom right of our first T the 9600 dollars in annual interest paid will be a smaller number in relationship to the loan amount so the 9600 dollars goes up on top we therefore take t

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