Explore BrainMass

Explore BrainMass

    Compound Interest

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Scenario: As a homeowner I need to take out a home equity loan for home repairs. Borrowing $10,000 how much will it cost in interest to pay the loan off in 5 years if compounded monthly. What is the difference in paying the loan off at the end of 5 years if simple interest is used.

    I am also looking for a credible loan agency to find out what the interest rate would be, as a hypothetical.

    © BrainMass Inc. brainmass.com June 3, 2020, 11:11 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/compound-interest-scenario-267666

    Solution Preview

    Need assistance with compound interest (not in excel)
    Scenario: As a homeowner I need to take out a home equity loan for home repairs. Borrowing $10,000 how much will it cost in interest to pay the loan off in 5 ...

    Solution Summary

    This solution explains how to calculate both simple interest and interest compounded monthly.

    $2.19

    ADVERTISEMENT