SOLUTION: Hi, this is my first time submitting a question. I get really REALLY confused when it comes to percentages. I'm not boasting or anything, but I'm not bad at maths. But I just re

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Hi, this is my first time submitting a question. I get really REALLY confused when it comes to percentages. I'm not boasting or anything, but I'm not bad at maths. But I just re      Log On

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Question 676179: Hi, this is my first time submitting a question.
I get really REALLY confused when it comes to percentages. I'm not boasting or anything, but I'm not bad at maths. But I just really can't understand percentages,interest, annum etc.
Example:
You borrow 400pounds to buy a computer and was charged compound interest at 5% per annum. You decide to pay the loan back after 3years. How much interest do you have to pay.
I have a test coming up soon, and I really want to get a good grade. Usually I ask my dad for help and i eventually get it in the end, but I just keep forgetting how to solve it, how it works, and then I have to ask him again and its just an endless loop. But i can't ask him this time, because he's on a business trip.
I'm really fed up and stressed right now. Please help me!
(By the way I'm 13 years old, and english isn't my first language, although I can speak/ write fluently)

Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!




Is the accumulated value of at per annum expressed as a decimal for years compounded annually, so:



The rest is just a bit of calculator work. is then the total amount you have to pay back and represents the original principal PLUS the interest. So if you only want to know the amount of the interest, subtract from .

By the way, if you compound more frequently than annually,



Where is the number of compounding periods per year.

John

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