Simple interest is calculated by multiplying the principal (P), the rate (r), and the time period (t). This formula, I = P * r * t, determines the total interest accrued.

APR stands for Annual Percentage Rate and indicates the yearly interest rate charged on borrowed money or earned through an investment. It does not account for compounding.

Calculating 50% of $200 means taking half of the amount, which results in $100. This is a straightforward percentage calculation.

A 25% markup on a product priced at $80 adds $20 to its price (25% of 80 = 20), resulting in a new price of $100. This illustrates basic percentage increase.

A basis point is defined as 1/100th of a percent, which is 0.01%. This unit is commonly used to describe small changes in interest rates or yields.

Using the compound interest formula, A = P*(1 + r)^t, we find that $1000 compounded at 5% for 3 years equals approximately $1157.63. This calculation demonstrates the effect of compounding over multiple periods.

The EAR is calculated by taking into account the effect of monthly compounding: EAR = (1 + 0.12/12)^12 - 1, which yields approximately 12.68%. This demonstrates the impact of compounding on the annual rate.

Simple interest is calculated as Principal x Rate x Time. For $500 at 8% per year over 2 years, the interest is $80, making the total amount owed $580.

For monthly compounding, the interest rate must be divided by 12 and the number of periods is 12 times the number of years. Therefore, the correct formula is A = 20000*(1 + 0.06/12)^(12*4).

An amortization schedule details how each payment on a loan is divided between interest and principal over time. This helps borrowers understand how their debt decreases and how much interest they will pay.

The monthly payment for a fixed-rate mortgage is determined by the loan amount, interest rate, and term of the loan. The original purchase price may differ from the actual amount borrowed due to a down payment.

The formula for the future value of an ordinary annuity is FV = Pmt * [((1 + r)^n - 1) / r]. This formula accounts for periodic payments and the effects of compounding.

To determine how much a future sum is worth in today's dollars, you perform discounting. This process adjusts the future amount for the time value of money.

WACC incorporates both the cost of debt and the cost of equity to provide an overall measure of a firm's cost of financing. This combined approach gives a more accurate picture of the cost of capital.

For accurate financial calculations, percentages must be converted into decimals by dividing by 100. This ensures that the interest rate is used correctly in all formulas.

To compute the EAR for quarterly compounding, use the formula EAR = (1 + (0.04/4))^4 - 1. This calculation yields approximately 4.06%, demonstrating the slight increase due to compounding.

The monthly payment for a loan is calculated using the annuity formula: Payment = P * [r(1 + r)^n] / [(1 + r)^n - 1]. This formula incorporates both the loan amount and the effect of compounded interest.

With semi-annual compounding at an annual rate of 6%, the rate per period is 3% (6%/2). Adding 1 to this rate gives a growth factor of 1.03 per semi-annual period.

The Rule of 72 states that the doubling time of an investment is approximately 72 divided by the annual rate of return. For 10 years, this calculation yields 72/10 = 7.2%, which is the estimated required rate.

The effective interest rate takes into account the effects of compounding within a given period, whereas the nominal rate is stated without compounding adjustments. This makes the effective rate a more accurate measure of the true cost or yield.