For example, if you take out a five-year loan for $20,000 and the interest rate on the loan is 5 percent, the simple interest formula would be $20,000 x . 05 x 5 = $5,000 in interest.
Alternatively, you can use the simple interest formula I=Prn if you have the interest rate per month. If you had a monthly rate of 5% and you'd like to calculate the interest for one year, your total interest would be $10,000 × 0.05 × 12 = $6,000. The total loan repayment required would be $10,000 + $6,000 = $16,000.
The compound interest on ₹20,000 at 5% per annum, compounded annually, is ₹2,050.
According to Rachel Sanborn Lawrence, advisory services director and certified financial planner at Ellevest, you should feel OK about taking on purposeful debt that's below 10% APR, and even better if it's below 5% APR.
To find 5 percent of 20,000, you simply multiply 20,000 by 0.05 (which is 5 percent as a decimal). So, 5 percent of 20,000 is 1,000.
Even small changes in your rate can impact how much total interest amount you pay overall. The total interest amount on a $30,000, 72-month loan at 5% is $4,787—a savings of more than $1,000 versus the same loan at 6%.
Use the formula A=P(1+r/n)^nt. For example, say you deposit $5,000 in a savings account that earns a 5% annual interest rate and compounds monthly. You would calculate A = $5,000(1 + 0.00416667/12)^(12 x 1), and your ending balance would be $5,255.81. So after a year, you'd have $5,255.81 in savings.
Formula: Simple Interest (SI) = Principal (P) x Rate (R) x Time (T) / 100. Example: If you invest Rs1,000 with a 5% annual interest rate for 3 years, you'd earn Rs150 in simple interest.
You'll likely need a credit score in the Good range (670 to 739) or higher to qualify for a $20,000 personal loan with a competitive interest rate. If your credit rating is Poor or even on the lower end of Fair, you may have difficulty getting approved for a personal loan of that size.
The monthly payment on a $20,000 loan ranges from $273 to $2,009, depending on the APR and how long the loan lasts. For example, if you take out a $20,000 loan for one year with an APR of 36%, your monthly payment will be $2,009.
Example: A six year fixed-rate loan for a $25,000 new car, with 20% down, requires a $20,000 loan. Based on a simple interest rate of 3.4% and a loan fee of $200, this loan would have 72 monthly payments of $310.54 each and an annual percentage rate (APR) of 3.74%.
For example, let's say you invest $10,000 in a simple-interest account that earns 5%. You'll earn an estimated $500 in interest and your account will be worth $10,500 after a year.
5% = 0.05 . Then multiply the original amount by the interest rate. $1,000 × 0.05 = $50 . That's it.
To find out how many years it will take your investment to double, you can take 72 divided by your annual interest rate. For instance, if your savings account has an annual interest rate of 5%, you can divide 72 by 5 and assume it'll take roughly 14.4 years to double your investment.
A $20,000 loan at 5% for 60 months (5 years) will cost you a total of $22,645.48, whereas the same loan at 3% will cost you $21,562.43. That's a savings of $1,083.05. That same wise shopper will look not only at the interest rate but also the length of the loan.
How much would a $30,000 car cost per month? This all depends on the sales tax, the down payment, the interest rate and the length of the loan. But just as a ballpark estimate, assuming $3,000 down, an interest rate of 5.8% and a 60-month loan, the monthly payment would be about $520.
As you will see, the future value of $30,000 over 20 years can range from $44,578.42 to $5,701,489.13.
Answer: 5% of 20 is 1.
To find 10 percent of 20000, use the formula: 10% of 20000 = (10/100) x 20000 = 2000. Therefore, 10 percent of 20000 is 2000.
5 percent of 15000 is 750.