But banks almost NEVER charge simple interest they prefer Compound Interest. The formula for compound interest is P 1 rn nt where P is the initial principal balance r is the interest rate n is the number of times interest is compounded per time period and t is the number of time periods. So the interest is 3 1000 10 300.
Fun compound interest activities and compound interest games to help with how to explain compound interest to a child as well as help make your kids WANT to save their money.
I PRT 5000 11 90 365 13562 Unit 81 Computing simple interest and maturity value 155 c Computing simple interestloans stated in days Example 5 As you can see from Example 5 a 360-day year benefits. A the future value of the investmentloan including interest. The interest rate and number. 5 Round to the nearest cent as needed The amount of interest earned is.