Where r is in decimal form. T Time of Investment. Secondly in the case of compound interest investors will also have to look at the frequency of the compounding because the frequency of compounding has a direct impact on the maturity value.
Simple interest is the amount of money paid on a loan.
The maturity value is the principal plus the interest as follows. The maturity value is the principal plus the interest as follows. I interest P principal r interest rate per year t time in years or fraction of a year CALCULATING SIMPLE INTEREST EXAMPLES. Once you have all of your data use the formula V P x 1 rn where V is the maturity value P is the original principal amount n is the number of compounding intervals from the time of issue to maturity date and r represents that periodic interest rate.