Simple Interest
Ace your homework & exams now with Quizwiz!
Annual
1 time a year
monthly
12 times a year or every 12 months
semiannual
2 times a year or every 6 months
quarterly
4 times a year or every 3 months
Simple interest formula
Interest = principal × rate × time
Simple interest
Interest that is calculated one time on the principal
Principal
The amount of money in an account. Amount invested
time
The amount of time for which the interest is calculated. Based on years or part of a year.
rate
The percent that is paid by the borrower
