If we consider a mortgage debt of 120000 and an annual rate of 30 per cent we can determine the monthly payments quite simply as follows. SI Interest P x R x T 100 P sum SI x 100 R x T R Rateyear SI x 100 P x T T Time SI x 100 P x R where SI. R the interest rate decimal n the number of times that interest is compounded per period.
Calculate the interest that Sally receives in one year and find how much money she has in the account after one year.
Formula to Calculate Simple Interest SI Simple Interest SI is a way of calculating the amount of interest that is to be paid on the principal and is calculated by an easy formula which is by multiplying the principal amount with the rate of interest and the number of periods for which the interest has to be paid. Simple interest SI is determined by multiplying the daily interest rate by the principal amount and by the number of days that elapse between payments. For example 1000 at 4 compound interest would earn you 40 in the first year but in the second year you would earn. Borrow 5000 over five years and by the last year you only pay interest on the amount remaining say 1000.