If you have a loan, you take the interest rate and multiply it by the loan price and that will give you the interest rate you have to pay plus the original amount of the loan. Subsidized and unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. A credit union is a not-for-profit cooperative financial institution that provides financial services for its members. A loan by a bank is to be repaid at a fixed future date with interest. Simple interest expense is calculated using the formula e = (principal)(rate)(time), where "e" is the interest expense, "p" is the principal amount, "r" represents the interest rate and ''t" is the time elapsed (in years). For example, an initial investment of $2,000 with 3% yearly interest over 5 years would yield $300 in interest expense (2000 × .03 × 5). In cases where the interest compounds more than once per year, the formula a = p(1 + r/n)nt is used, with "a" equal to the amount accumulated at the end of the period, "p" equal to the principal amount, "r" referring to the interest rate, "n" representing the number of times compounding annually, and "t" the number of years the amount is deposited or borrowed for. For example, $1,500.00 deposited into an account with an annual interest rate of 4.3%, compounded quarterly, grows to $1,938.84 after six years (1,500(1 + 0.043/4)4(6)).
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