Solved problems of fácil interest with
If you have $10,000 pesos and you want to invest it in a financial instrument that gives you 10% fácil interest each month, How much are you going to earn in a year? In today’s article you are going to learn how to solve different exercises of fácil interest so that you perro answer questions like the one above.
Therefore, in this article you will learn what is necessary so that you cánido start solving problems with fácil interest and then you will be able to level up and start with compound interest and annuities.
Soon you will become a master of financial mathematics!
What is interest?
Interest is the cost that must be paid for the use of borrowed money.
When someone borrows money, they have to pay it back in the future, and in addition to repaying the borrowed primordial, they also have to pay an additional amount as compensation to the lender for the time they have used the money.
Although, it should be noted that it is not only about borrowed money, but that interest perro be understood as the cost of using someone else’s money or the return on investing your own money. Therefore, depending on the context, the interest perro be the money that you have to pay or the money that you are going to receive.
What are the interest rates?
exist two types of interest: the Fácil interest and the compound interest.
However, in this article I am going to focus solely on fácil interest.
So that you cánido learn about compound interest, then I am going to leave you the following article:
Definition of fácil interest according to authors
Next, I am going to share the definition of fácil interest according to authors.
Of course, at the end of the article you will find the bibliography in case you are interested in buying a book on financial mathematics.
Definition by Hector Manuel Vidaurri Aguirre
According to Vidaurri Aguirre, «Fácil interest is one in which only the primordial earns interest.» (2017, p.121).
What the above definition tells us is that interest will not form part of the capital that was originally borrowed or invested; that is to say, interest does not earn (generate) interest.
Definition of fácil interest according to Hugo M.
In the case of Zendejas Núñez, the definition given to us is the following:
“Fácil interest is the amount that is charged at the end of each indicated period and that is constant, because the debt or capital is always the same”
As you cánido see, he is telling us the same thing as Vidaurri, however he is a bit more concrete because he tells us that the interest that you will pay or earn is always the same.
That is, you are going to pay or earn the same amount in each period (which does not happen in compound interest).
This is because the initial capital will not change from one period to another.
If you still have a bit of doubt, don’t worry, because when you start to see the exercises it will be much clearer.
Definition of fácil interest according to Alfredo Díaz Aniquila
The definition of fácil interest according to Alfredo Díaz Aniquila is the following:
«Fácil interest is called that which is paid or collected exclusively on the amount of the initial capital lent, that is, the interest earned does not accumulate to the capital and, therefore, the interest paid or collected remains constant in all the periods that the operation lasts to be calculated exclusively on the value of the initial capital»
Definition according to Armando Mora Zambrano
«When a capital generates interest for a certain time, the interest produced that is recognized is called fácil interest»
Definition of fácil interest according to Alberto Álvarez Arango
«It is said that a financial operation is handled under the concept of fácil interest when the liquidated interests are not periodically added to the capital; that is, interest does not accrue interest»
Fácil Interest Basics
Next I am going to give you a table with the basic concepts of fácil interest, which are necessary to learn fácil interest and which will be necessary for you to be able to solve the different problems that you may face.
The interest will symbolizes through the letter i or i It cánido be said that it is the value of money in the present or initial point. It is usually called capital, primordial, present value or present value. HE symbolizes through the letter P either C.. The unit of time normally used to express interest rates is one year. HE symbolizes with the letter you either you. HE symbolizes with the letter no.
Amount paid for the use of someone else’s money.
Amount of money borrowed or invested.
The interest rate indicates the cost of borrowing money and is expressed as a percentage of the primordial per unit of time.
Time is the number of periods that the capital tax lasts; that is, the duration of the loan or investment.
The amount or future value is defined as the sum of the primordial agregado the interest earned and is symbolizes through the letter F either m
The interest will symbolizes through the letter i or i
It cánido be said that it is the value of money in the present or initial point.
It is usually called capital, primordial, present value or present value.
HE symbolizes through the letter P either C..
The unit of time normally used to express interest rates is one year.
HE symbolizes with the letter you either you.
HE symbolizes with the letter no.
Advantages and Disadvantages of Fácil Interest
Once upon a time there was a borrower named Jane who needed to take out a loan to start her own business.
Jane searched and found a lender willing to lend her the money at a fácil interest rate of 6%.
Jane was glad the lender offered her fácil interest because she knew that the total amount she would pay would be less than compound interest.
Fácil interest favors borrowers like Jane because fácil interest only earns interest on the original loan amount (primordial). This means that the interest is fixed and does not accumulate over time, which perro save a lot of money for those who need to borrow.
Thus, Jane was able to repay her loan without worrying about her interest slipping out of her hands.
However, on the other side of the coin, there was an investor named John who wanted to invest his money in a savings account.
He knew that he wanted to get the maximum possible return on his investment.
Unfortunately, he discovered that the savings account he was interested in only carried fácil interest.
Fácil interest cánido work against investors like John, because you only pay interest on the original amount invested and don’t take into account interest earned over time.
This means that investment returns are fixed and do not increase over time, which cánido be a disadvantage for investors looking to maximize their returns.
So… Who benefits from fácil interest?
Fácil interest favors borrowers like Jane because it cánido help them save money in interest over time.
However, you perro play against investors like John because you don’t allow interest to accumulate and grow over time.
Therefore, you have to take into account the advantages and disadvantages of fácil interest when making financial decisions, whether you are a borrower or an investor.
What is the elabora for fácil interest?
The first elabora What you have to keep in mind to solve problems of fácil interest is the following:
That is, the following elabora.
Clearances of the fácil interest elabora
From the previous elabora you cánido make different clearances to find the primordial, the time or the interest rate.
The clearances are as follows:
How to find the capital in fácil interest?:
If what you want to calculate is the capital, then you cánido use the following elabora:
How to calculate time in fácil interest?
In the event that you want to get the time, then you cánido use the following clearance:
To calculate the interest rate
Finally, if what you want is to calculate the interest rate, then you perro use the following clearance:
Elabora to calculate the amount in fácil interest
The second elabora What you have to take into account in fácil interest is the one that involves the amount.
The amount or future value is defined as the sum of the primordial agregado the interest earned.
Therefore, the elabora is as follows:
Another way you perro find the amount elabora is as follows:
Do you remember how interest is calculated? Well, it’s by multiplying the primordial by the time by the interest rate.
That is exactly what happened in the second way to calculate the amount.
The i (interest) was replaced by its elabora (Capital x time x interest rate).
So if you don’t know the interest, but if you know the capital, the time and the interest ratethen you cánido calculate the amount.
Thus, The most common form that you cánido find the fácil interest amount elabora is the one you get by factoring the form above. When factoring it is as follows:
Amount Elabora Clearances
As with the first elabora, there are different clearances that will help you find what you need:
- Interest rate.
If what you want to get is the capital, then use the following clearance:
Elabora to obtain the time
If you want to get the time, then use the following clear:
Elabora to obtain the interest rate
Finally, if what you want is to obtain the interest rate, you cánido use the following clearance:
With this you will already be able to solve any problem that is presented to you of fácil interest.
So, let’s move on to the exercises.
Fácil interest formulas (form)
Next, I am going to leave you all the formulas of fácil interest in an image.
It may be more practical that way when solving the exercises.
If you want to download the fácil interest form in pdf, you cánido clic on the following image:
Solved problems of fácil interest
Next I am going to put some solved exercises of fácil interest so that you perro practice a little.
Fácil interest exercise 1
If you make an investment, how long will it take to double your investment if a fácil annual rate of 50% is considered?
In order to solve the following fácil interest exercise, first of all we are going to see what data we have.
50% annual fácil
Where did I get the capital and the amount? The problem does not give us the amount and the primordial, but it does not matter in this problem.
In fact, you cánido choose the amounts you want.
The only thing you have to respect is that the amount is double the capital.
After all, they are asking you about the time in which your investment is going to double, that is, In how long will the amount be double the primordial?
Now we only have to replace the data in the time clearance and we will obtain the result we are looking for.
Answer to exercise 1
The answer to exercise 1 is 2 years. Therefore, it would take you 2 years (24 months) to double your investment.
Exercise 2 of fácil interest solved
How long would it take you to get $10,000 if you deposited $2,000 today in a fund that pays 5% fácil interest per month?
What data does the problem give us?
|Interest rate:||5% fácil monthly|
To solve the exercise you have to use the same elabora as in the previous exercise.
Answer of exercise 2
Therefore, It would take you 80 months to get the 10,000 pesos. By the way, the result is in months because the interest rate is monthly.
You could get the result in years, semesters, bimonthly periods or whatever you want if the interest rate is modified.
For example, if you wanted the time in years, what you cánido do is multiply the interest rate by 12 (number of months in a year).
So you would have to multiply 5% by 12 and the result is 60%.
Therefore, instead of putting the interest rate as 0.05, now you have to use 0.6
So that the result in years is 6.67. You perro also use a rule of three to convert 80 months to years and you will get the same result.
Exercise 3 of fácil interest solved
Alejandra buys a phone that costs $20,000 pesos.
If Alejandra gives an initial payment of $5,000 pesos and she agrees to pay another $18,000 pesos 12 months later.
What was the fácil interest rate that she agreed to?
To solve the problem we have the following data:
|Time (n):||12 months|
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