I Interest rate where 1 is 100 n number of periods. PV 213592 or the minimum amount that you would need to be paid today to have 2200 one year from now. Simple interest formula is given as.
SI P R T 100 Where SI simple interest.
Using the prior example of a 1000 account with a 10 rate after 3 years the balance would be 1300. Calculating the interest rate using the present value formula can at first seem impossible. The ending balance or future value of an account with simple interest can be calculated using the following formula. Find the present value using the present value formula and a calculator.
