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Simple Interest
Interest Formulas
Simple Interest
So what is difference between compound and simple interest?
With simple interest, you do not apply interest to your accrued earnings
It is like "spending" each penny of interest everytime it was placed in your bank account
Present Value (Principal Amount):
$
Annual Interest Rate
%
How many years?
Based on Principal Amount of
$1000
, at an interest rate of
7.5%
, over
10 year(s)
:
Total Value = $1750
Total Interest = $750