Chapter 8 Formulas Flashcards
Ordinary Interest
(Principle x Rate x Time)/360
Exact Interest
(Principle x Rate x Time)/365
Maturity Value
Principle + Interest Owed
Amount Financed
Selling Price - Down Payment
Down Payment
Amount x Percent Down Payment
Monthly Payment
(Amount of Loan/$100) x Monthly Payment for a $100 Loan
Total Amount Repaid
Number of Payments x Monthly Payment
Finance Charge (Simple Interest Installment Loans)
Total Amount Repaid - Amount Financed
Payment to Principle
Monthly Payment - Interest
New Principle
Previous Principal - Payment to Principle
Final Payment
Previous Balance + Current Month’s Interest
Interest Saved
Total Payback - (Sum of Previous Payments + Final Payment)
Finance Charge (APR)
Total Payback - Amount Financed
Finance Charge per $100
$100 x (Finance Charge/Amount Financed)
