How Do You Calculate 4 Per Cent Interest On 100000?


8 Answers

Alex Wheeler Profile
Alex Wheeler answered
The simple calculation to work out the interest is the amount multiplied by the interest. So, in this case, the calculation would be 100000 x 0.04 (4 per cent per cent), which equals 4000.

This can be applied to any interest amount but you just need to remember the decimal point. The best thing to do to remember where the decimal point needs to be is to remember that 1.0 is the equivalent of 100 per cent per cent. So, for example; 50 per cent would be 0.5, 25 per cent would be 0.25 and so on.

When it comes to interest on loans, overdrafts, credit cards or anything associated with banks or financial institution it is usually calculated on a monthly or yearly amount (or in rare circumstances six monthly) so if you were receiving or paying 4 per cent interest per month that on £100000 then that would be £4000 or if you want to work out how much that would be per year then simply multiply the figure by 12 which would get you 48000.

If you are unsure of the interest you are paying or receiving it is always a good idea to look on the website of the institution or simply ask them. If you feel that the amount of interest you are paying is above normal and that you feel that it is higher than other places then do not be afraid to shop around for a better deal or even approach the bank or institution you are with to see if they can offer any better.

After all, they want to keep your business so don’t be afraid of asking for a better rate or if you have seen a better rate elsewhere asking them if they can better or equal that. The worse they can say is no and you won’t have lost anything if they do.
Vikash Swaroop Profile
Vikash Swaroop answered
It is very simple to calculate interest on any amount if you know the rate of interest that has been levied by the lender. In your question you have mentioned the principal amount and rate of interest also, so the job is certainly easy. The formula that you can apply to calculate interest is following: Rate of Interest × Principal Amount/ 100.

When you apply the formula in this context, you can get following result: 4 X 100000/ 100 = 4000. This formula can be used to figure out the interest on any amount but if you have time also in the context, then you can multiply the amount with the time also to figure out the whole amount. When time is being given then the formula can be expressed as following: Rate of Interest X Principal Amount X Time/ 100.
Anonymous Profile
Anonymous answered
Find the interest on $900 at 6% annual interest for four months
Anonymous Profile
Anonymous answered
Interest if usually figured on an annual basis. If it is less than a year or more than a year, it is adjusted accordingly.

For example, if you loaned the $100,000 to someone and it was paid back and included the $4,000 for a total of $104,000 in six (6) months, then the rate of interest would be 8 percent. If it took two years to pay back the same amount the interest rate would be only 2 per cent.

So the formula should be adjusted to:

Rate of Interest × Principal Amount x Number of Days/ 36000 = Amount

360 day per year is used to make the maths easier and it is a widely used number.

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