1,773.60
842.40
Simple interest means the interest is calculated one time on the total principal of the loan. Therefore, you would pay back $11,161.50 on this loan. However, simple interest loans are very uncommon; most loans in life have compound interest.
Simple interest is based on the original principle of a loan. Simple interest is generally used on short-term loans. Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on.
At simple rate of interest, the figure will come out to 174.The formula for simple rate of interest calculations is i=prt where i equals the interest, p equals the principal, r equals the rate and t equals the time (in years).To calculate the interest for compound interest, visit the related link.
Simple interest is calculated on the principal amount only, which may sound like a good idea at first. The problem with simple interest loans is that the interest is calculated daily instead of monthly. This means you will end up paying more in interest with a simple interest loan.
Simple Interest
$494.34 Interest= principal amount * time* simple interest %
Draw a flow chart to calculate simple interest with 10% rate if time is greater than 2 yrs otherwise calculate simple interest with 5%.
60 x .0739 x 4 Multiply those together and tada
60 x 7.39 x 4 ie 1773.60
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
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
500 principal, 10 percent annual rate => 50 annual interest 2 year => 100 total interest.
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.