Question

Interest is always calculated on

Answer 1

Answer:

Interest rates are calculated on effective annual rates known as Annual Percentage Rate (APR). Due to the annual rate applied, this interest compounds annually. If the interest was calculated on a per month basis, it would compound every month, thereby increasing the overall liability of the amount paid as interest.

Explanation:

You can calculate Interest on your loans and investments by using the following formula for calculating simple interest: Simple Interest= P x R x T ÷ 100, where P = Principal, R = Rate of Interest and T = Time Period of the Loan/Deposit in years.

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Answer 2

Answer:

interest costs are determined on viable yearly rates known as Annual Percentage Rate (APR).

Explanation:

interest costs are determined on viable yearly rates known as Annual Percentage Rate (APR). Because of the yearly rate applied, this premium accumulates every year. On the off chance that the interest was determined on an every month premise, it would build consistently, consequently expanding the general responsibility of the sum paid as interest.

      You can compute Interest on your advances and speculations by involving the accompanying equation for working out basic premium: Simple Interest=$\frac{P*T*R}{100}$,

where P = Principal,

R = Rate of Interest and

T = Time Period of the Loan/Deposit in years.

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