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Define simple interest |
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Answer» Simple interest is interest calculated on the principal portion of a loan or the original contribution to a SAVINGS account. Simple interest does not compound, MEANING that an account holder will only gain interest on the principal, and a borrower will never have to pay interest on interest already ACCRUED. Formula A = P(1+rt)A = FINAL amountA = final amountP = INITIAL principal balanceA = final amountP = initial principal balancer = annual interest rateA = final amountP = initial principal balancer = annual interest ratet = time (in years)Hope its help you.... |
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