4 time periods (eg 4 years if the 5% simple interest were added each year).
In simple interest, the interest is added, but attracts no interest itself (that is compound interest) - only the original value attracts the interest:
5% of RM 25000 = RM 1250 added each time
RM 30000 - RM 25000 = RM 5000
RM 5000 ÷ RM 1250 = 4 time periods
Simple Interest
$494.34 Interest= principal amount * time* simple interest %
35
1282.5
42 x 8 x 3.5 ie 1176
Simple Interest
$494.34 Interest= principal amount * time* simple interest %
I
35
simple interst is when you earn interest from your principal but compound interest is when you earn interest from your principal as well as from your previous interest
1,773.60
Simple interest is determined by multiplying the interest rate by the principal of the number of periods. Where, P is the loan and the amount is usually expressed as an annualized percentage.
1282.5
The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.
500 principal, 10 percent annual rate => 50 annual interest 2 year => 100 total interest.
Rs 80.
842.40