posted by martin sostre .
yhank you very much for solving the question i asked yesterday:the two parners in a business, one partner mortgaged business property to his co-partner for $15,000 at 12% interest. no payments were ever made for 17 yearsyour answer was "assuming the interest is compounded yearly"the money owedis: A=$15000*1.12^17=$102,990.61. but if the interest is not compounded how much is owed ?
I looked at the solution that MathMate gave you.
I would have done it the same way.
In this day and age interest would be calculated by compounding.
If you want simple interest then the problem is even easier
interest for the 17 years = 15000(.12)(12) = ....
add that to 15000
thanks again for your answer to my question about a 15000 mortgage at 12%interest on which no payments were ever made for 17 years.your answer for smple interest (since n.j. prohibits compound interest)was "interest for the 17 years=15000(.12(12)= add that to 15000 i don't understand what(.12)(12) means so i cannot add that to 15000.excuse me for being math ignorant.
It was probably a typo, make that:
interest for the 17 years = 15000(.12)(17)
which is equivalent to $1800 a year for interest.
thanks, igot it now. one more question: how many states prohibit compounding interest rates in mortgages?
how many states in the u.s.a. prohibit compouding interest in mortgages?
how many states in u.s.a. prohibit compound interest in mortgages?