Question

If annual interest rate is 8.25% on 90,900.00 What is my interest for 1/2 a month. It's for 8 years.

Answer 1

The interest for 1/2 month is $312.47, and the total interest for 8 years is $30, 032.64

Explanation:

Make a plan:

• Monthly Interest Rate: 8.25% / 12 = 0.006875
• Interest for 1/2 month is 90900 * 0.006875 * 0.5 = 312.46875
• Total Interest for 8 years is 312.46875 * 8 * 12 = 30032.64
• Solve the problem:
• The monthly Interest Rate is 8.25% / 12 = 0.006875 (Ground Truth)
• Interest for 1/2 month is 90900 * 0.006875 * 0.5 = 312.46875 (ground truth).
• Total Interest for 8 years is 312.46875 * 8 * 12 = 30032.64 (ground truth).

Draw the conclusion:

• The interest for 1/2 month is $312.47, and the total interest for 8 years is $30, 032.64

Hope this helps!

Answer 2

To calculate the interest for 1/2 a month over a period of 8 years, we first need to calculate the total number of months in 8 years:

Total number of months = 8 years x 12 months/year = 96 months

Next, we can calculate the interest for half a month:

Interest = Principal x Rate x Time

Where:

- Principal = $90,900.00

- Rate = 8.25% (annual interest rate)

- Time = 0.5/12 years (half a month, expressed in years)

Rate needs to be converted to a monthly rate, so we divide it by 12:

Rate = 8.25% / 12 = 0.6875% (monthly interest rate)

Time needs to be expressed in years, so we divide it by 12:

Time = 0.5/12 years

Now we can calculate the interest:

Interest = $90,900.00 x 0.006875 x 0.0416667

Interest = $25.08 (rounded to the nearest cent)

Therefore, the interest for 1/2 a month on a principal of $90,900.00 with an annual interest rate of 8.25% over a period of 8 years is $25.08.