The formula for annual compound interest is A=P(1+r/n)^nt where A is the future value of the loan. P is the amount that you first put in. R is the annual interest rate. N is the number of times that interest is compounded per year and T equals the length of the loan/investment. If you were saving money. For college then this would be a good way to go but if you were taking money out as a loan then you would end up paying more. A government subsidized loan is money that The government will give you if you're eligible it is almost like financial aid. Bank won't you take out of the bank and every month they charge you interest on you how much you take out based on a percentage so in the end you end up paying more based on how much you take out and how long it takes you to pay it back. You would take out 20,000 dollars for the total four years. It could take any amount of time depending on the rate you agree to pay it back.
|
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
February 2016
Categories |