Quizzes & Puzzles2 mins ago
How to add a percentage to a total
14 Answers
Hi all,
Sorry for the basic question but I have no clue how to do this stuff.
Say I have an amount (X) and I need to add Y% onto X, how do I do this?
In other words, 33.33 + 5% - I get 33.38 but I don't think I'm doing this right.
For the simple fact that 5% doesn't seem alot of profit for the bank to make on a potential mortgage I will take out in the future. LOL.
So basically £100,000 + 5% (both per month and per annum if poss please, also will it be 5% p/m or p/a?)
Many Thanks (if you understood this)
Joe.
Sorry for the basic question but I have no clue how to do this stuff.
Say I have an amount (X) and I need to add Y% onto X, how do I do this?
In other words, 33.33 + 5% - I get 33.38 but I don't think I'm doing this right.
For the simple fact that 5% doesn't seem alot of profit for the bank to make on a potential mortgage I will take out in the future. LOL.
So basically £100,000 + 5% (both per month and per annum if poss please, also will it be 5% p/m or p/a?)
Many Thanks (if you understood this)
Joe.
Answers
1 to 14 of 14
>>>>>For the simple fact that 5% doesn't seem alot of profit for the bank to make on a potential mortgage
And you pay the 5% interest every month and every year for the next 30 or 40 years.
So if your mortage is say £100,000 then 5% interest is £5000.
So...
And you pay the 5% interest every month and every year for the next 30 or 40 years.
So if your mortage is say £100,000 then 5% interest is £5000.
So...
17:39 Sat 04th Feb 2012
I don't know is the easiest way but this is how I do it.
Put 33.33 in your calculator and divide by 10.This will give you 10% =3.333
You want 5% so didvide the 3.333 by 2 this gives you 1.6665.
You then add that on to 33.33 which gives you 34.9965 or to round it up 35.
So 10% of £100,000 is £10,000 half it £5,000 so add that to £100,000 and you have £1005.000.
Someone might be able to show you and easier way.
Put 33.33 in your calculator and divide by 10.This will give you 10% =3.333
You want 5% so didvide the 3.333 by 2 this gives you 1.6665.
You then add that on to 33.33 which gives you 34.9965 or to round it up 35.
So 10% of £100,000 is £10,000 half it £5,000 so add that to £100,000 and you have £1005.000.
Someone might be able to show you and easier way.
To do it without a calculator it would be easier to to find 1% to start (remembering 100%/100=1%). 100,000 /100 = 1000 then multiply this by 5 (to get the 5%) = 5000, this is the amount of to be added to the original sum. 100,000 + 5,000 = 105,000. Calculators are wonderful but it is useful to know exactly what you are trying to do then you can use the process in different situations. So, 33.33/100 = .03333 x 5=1.6665, 33.33+1.6665=34.9965. I hope this helps.
>>>>>For the simple fact that 5% doesn't seem alot of profit for the bank to make on a potential mortgage
5% is not the profit. it is the INTEREST.
And you pay the 5% interest every month and every year for the next 30 or 40 years.
THAT is how they make a profit on your mortgage.
So if your mortage is say £100,000 then 5% interest is £5000.
So you have to pay them £5000 each year JUST to pay off the interest. If all you pay them the first year is £5000 then you still owe them £100,000 at the end of the year.
Only if you pay them MORE than £5000 per year do you pay off any of the capital.
You may find after 5 years you have only paid off say a £1000 off the capital and you still owe them £99.000, and you still have to keep paying them 5% interest on that each year.
So you can see how the bank makes so much money on your mortgage.
5% is not the profit. it is the INTEREST.
And you pay the 5% interest every month and every year for the next 30 or 40 years.
THAT is how they make a profit on your mortgage.
So if your mortage is say £100,000 then 5% interest is £5000.
So you have to pay them £5000 each year JUST to pay off the interest. If all you pay them the first year is £5000 then you still owe them £100,000 at the end of the year.
Only if you pay them MORE than £5000 per year do you pay off any of the capital.
You may find after 5 years you have only paid off say a £1000 off the capital and you still owe them £99.000, and you still have to keep paying them 5% interest on that each year.
So you can see how the bank makes so much money on your mortgage.
It will be 5% per annum, not monthly. The $5000 is interest on the whole amount for one yearl As you pay your mortgage monthly, the principal amount will go down a bit so the next year there will be less interest to pay so the principal sum will drop by a larger increment every year.
With a mortgage, the bank works out a schedule over a set period (say 20 years, if you're lucky) and works out the repayment plus interest for that whole period so you won't have to pay one year's worth of principal plus one year's of interest - 5k + 5k per annum.
This way the banks get mainly interest for the first few years so if you decide to break the mortgage they got their lot first and you're still left with a large debt.
Don't ever put money in term deposits or saving schemes when you owe money on a mortgage or credit card, you'll pay a lot more interest than what you'd get.
With a mortgage, the bank works out a schedule over a set period (say 20 years, if you're lucky) and works out the repayment plus interest for that whole period so you won't have to pay one year's worth of principal plus one year's of interest - 5k + 5k per annum.
This way the banks get mainly interest for the first few years so if you decide to break the mortgage they got their lot first and you're still left with a large debt.
Don't ever put money in term deposits or saving schemes when you owe money on a mortgage or credit card, you'll pay a lot more interest than what you'd get.
1 to 14 of 14
