Question listed below?

Kassie borrowed $1000 from the bank at a 12% interest rate. How much money will kassie have to pay the bank over a six month period of time?

Question listed below?interest only loan

If she pays it all back after 6 months, she will have to pay the $1000 principle plus 12%/2=6% interest, which, on $1000 is $60 for a total of $1060.

Question listed below? loan

1,120.00|||It depends on whether the loan is based on simple interest or compound interest. It also depends on the length of the loan, how often payments are made and whether the payments are the same each time (such as on a mortgage).

But assuming the question means to ask how much interest is due on the loan after six months, assuming nothing has been paid to date:

For simple interest at a 12% annual interest rate, 6% of the balance will be due as interest after a half year. That is $60.

If it is compound interest and the interest is compounding continuously rather than daily or some other period, the interest accumulated is : $1000*(1.12)^(0.5) - $1000 = $58.30

Note: this may seem like a better deal in the short term, but if this interest is not paid off, six months later the interest is due on the unpaid interest as well and an additional $61.70 is due.

Credit cards are based on compound interest, so anytime you pay less than the amount of interest that has been charged in the last payment period, you will have even more additional interest due the next period.