4/3/2024 0 Comments Loan interest calculator![]() ![]() Simple interest formula (principal + interest) You should use our compound interest calculator instead. So, if you're looking to work out compound interest, Interest is calculated on the already accumulated interest over time. Savings accounts earn compound interest, meaning that These simple interest calculations assume that interest is not compounded. Note that the interest rate (r) and time period (t) are in the same time units (years for the first calculation and months for the second). Likewise, if you borrow $500 from a friend at 3% per month for 6 months, your simple interest calculation would be: To give an example, if you wish to calculate simple interest on a $5,000 loan at a 3% annual interest rate for 2 years, your calculation would be: The number of periods you wish to calculate for. To calculate simple interest on a lump sum, multiply your figure by the interest rate per period (as a decimal) and then again by
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