kat8585 Posted August 8, 2008 Group: Royal Member Followers: 3 Topic Count: 1,360 Topics Per Day: 0.21 Content Count: 7,866 Content Per Day: 1.23 Reputation: 26 Days Won: 0 Joined: 11/22/2006 Status: Offline Birthday: 04/18/1946 Share Posted August 8, 2008 Can anyone tell me how compound interest and revolving interest work? Link to comment Share on other sites More sharing options...
Hunterpoet Posted August 9, 2008 Group: Removed from Forums for Breaking Terms of Service Followers: 0 Topic Count: 128 Topics Per Day: 0.02 Content Count: 2,704 Content Per Day: 0.44 Reputation: 25 Days Won: 1 Joined: 05/29/2007 Status: Offline Birthday: 10/08/1950 Share Posted August 9, 2008 The IRS compounds your interest and makes it revolve into their bank account Link to comment Share on other sites More sharing options...
mathqueen Posted August 9, 2008 Group: Diamond Member Followers: 1 Topic Count: 55 Topics Per Day: 0.01 Content Count: 962 Content Per Day: 0.15 Reputation: 1 Days Won: 0 Joined: 03/26/2006 Status: Offline Birthday: 05/16/1975 Share Posted August 9, 2008 The IRS compounds your interest and makes it revolve into their bank account Compound interest is interest that keeps accumulating on top of itself. Simply put, you pay interest on the initial loan amount, then interest on the interest, then interest on the interest that was on the interest, etc. Revolving interest, that I have not heard of. Are you sure you don't mean revolving credit? Link to comment Share on other sites More sharing options...
kat8585 Posted August 9, 2008 Group: Royal Member Followers: 3 Topic Count: 1,360 Topics Per Day: 0.21 Content Count: 7,866 Content Per Day: 1.23 Reputation: 26 Days Won: 0 Joined: 11/22/2006 Status: Offline Birthday: 04/18/1946 Author Share Posted August 9, 2008 The IRS compounds your interest and makes it revolve into their bank account Compound interest is interest that keeps accumulating on top of itself. Simply put, you pay interest on the initial loan amount, then interest on the interest, then interest on the interest that was on the interest, etc. Revolving interest, that I have not heard of. Are you sure you don't mean revolving credit? That too. But I meant simple interest. Link to comment Share on other sites More sharing options...
mathqueen Posted August 9, 2008 Group: Diamond Member Followers: 1 Topic Count: 55 Topics Per Day: 0.01 Content Count: 962 Content Per Day: 0.15 Reputation: 1 Days Won: 0 Joined: 03/26/2006 Status: Offline Birthday: 05/16/1975 Share Posted August 9, 2008 Simple interest is only calculated on the original loan amount. Link to comment Share on other sites More sharing options...
Godfearer Posted August 9, 2008 Group: Advanced Member Followers: 1 Topic Count: 11 Topics Per Day: 0.00 Content Count: 177 Content Per Day: 0.03 Reputation: 4 Days Won: 0 Joined: 07/13/2008 Status: Offline Share Posted August 9, 2008 i believe the bible calls interest usuary. it says not to charge usuary. Link to comment Share on other sites More sharing options...
kat8585 Posted August 9, 2008 Group: Royal Member Followers: 3 Topic Count: 1,360 Topics Per Day: 0.21 Content Count: 7,866 Content Per Day: 1.23 Reputation: 26 Days Won: 0 Joined: 11/22/2006 Status: Offline Birthday: 04/18/1946 Author Share Posted August 9, 2008 The IRS compounds your interest and makes it revolve into their bank account Compound interest is interest that keeps accumulating on top of itself. Simply put, you pay interest on the initial loan amount, then interest on the interest, then interest on the interest that was on the interest, etc. Revolving interest, that I have not heard of. Are you sure you don't mean revolving credit? What is revolving credit? They all 3 seem like a ripoff. Link to comment Share on other sites More sharing options...
mathqueen Posted August 9, 2008 Group: Diamond Member Followers: 1 Topic Count: 55 Topics Per Day: 0.01 Content Count: 962 Content Per Day: 0.15 Reputation: 1 Days Won: 0 Joined: 03/26/2006 Status: Offline Birthday: 05/16/1975 Share Posted August 9, 2008 What is revolving credit? They all 3 seem like a ripoff. Revolving credit is simply a loan amount borrowed, then once it's paid off, you can borrow that amount again. Just like a credit card. And yes, interest is SO not cool. Link to comment Share on other sites More sharing options...
kat8585 Posted August 9, 2008 Group: Royal Member Followers: 3 Topic Count: 1,360 Topics Per Day: 0.21 Content Count: 7,866 Content Per Day: 1.23 Reputation: 26 Days Won: 0 Joined: 11/22/2006 Status: Offline Birthday: 04/18/1946 Author Share Posted August 9, 2008 Compound interest should be outlawed. Link to comment Share on other sites More sharing options...
irishcowboy Posted August 9, 2008 Group: Royal Member Followers: 1 Topic Count: 127 Topics Per Day: 0.03 Content Count: 3,248 Content Per Day: 0.88 Reputation: 13 Days Won: 0 Joined: 03/23/2014 Status: Offline Share Posted August 9, 2008 Can anyone tell me how compound interest and revolving interest work? compound interest would be figured in different ways..... 10% interest a year, is compounded once a year, figured in once a year, could either be on the lowest amount or an average. 10% annual, compounded quarterly is recalculated every three months, and again can be figured on average or lowest amount, 10% annual, compounded monthly, is figured the same way as the quarterly, but only once a month instead of every three months, 10% annual, simple, is actually figured daily, every day the interest is added in (some short term mortgages are figured this way, so if you pay your amount due on the due day, you pay less interest then if you pay one day late, or even several days late, but if you pay earlier then the due date, you pay less interest..... to figure annual, you take the principle and multiply it by (10% interest) .10 35,000 X .10 = 3500 + 35000 = 38,500 if you are figuring quarterly by the same amount, you will do it four times in one year and have a different total 35000.00 X .10 = 3500.00 / 4 = 875.00 + 35000.00 = 35875.00 (end of first quarter) 35875.00 X .10 = 3587.50 / 4 = 896.875 + 35875.00 = 36771.875 (end of second quarter) 36771.875 X .10 = 3677.1875 / 4 = 919.2968 + 36771.875 = 37691.171875 (end of third quarter) 37691.171875 X .10 = 3769.1171875 / 4 = 942.279296875 + 37691.171875 = 38634.066796875 (end of fourth quarter/first year) to figure for monthly compounding, you divide by 12 instead of 4 (for a total of 12 calculations instead of only four), to compound daily, you divide by the number of days in the year (365 or 366 depending on if a leap year or not) and add them in like the example. Time for me to go eat now... blessing to all mike Link to comment Share on other sites More sharing options...
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