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Math Help - Intrest rate problem?

  1. #1
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    Its for my bf
    He has a 4000.00 dollar loan with 9% interest 8 months annually how much would he owe?

    I have no idea how to do these problems

    thanx

    ph yea its a student loan
    Last edited by mr fantastic; September 19th 2009 at 06:46 PM. Reason: Merged posts
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  2. #2
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    Quote Originally Posted by tiffieblah View Post
    Its for my bf
    He has a 4000.00 dollar loan with 9% interest 8 months annually how much would he owe?

    I have no idea how to do these problems

    thanx

    ph yea its a student loan
    check out Compound interest - Wikipedia, the free encyclopedia

    you need to use this formula

     Amount = amount to borrow * (1 + interest rate)^time

    I would say that if the interest is calcualted monthly then the amount that he would owe would be

     Amount = 4000 * (1 + \frac{0.08}{12})^8

    I calculate that the Amount would be $4218.38
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  3. #3
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    If you simply need an approximate:
    4000 * .09 / 12 = $30 interest each month
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  4. #4
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    Quote Originally Posted by Wilmer View Post
    If you simply need an approximate:
    4000 * .09 / 12 = $30 interest each month
    I'm having a drink :P
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  5. #5
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    So shall I
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