Simple interest is a fixed percentage of the amount borrowed or invested.
Simple interest is a percentage of a given amount that is multiplied by the number of time periods. This interest is added to the principle amount and serves as payment for the use of money or a return on the money invested.
The total amount of the loan or investment will therefore equal the principal plus interest.
Time- the number of time periods.
This formula can be transposed to find each of the terms. This can be found by making the amount you want to find the subject of the equation.
Effective Interest Rate
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