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Simple Interest Simple Interest is the money charged on the fixed amount by the lender for lending the money to the borrower for the certain period of time.
The interest charged in case of simple interest remains fixed for all the year. The formulae for Simple interest is Interest = (Principal * Time * Rate) / 100 Amount = Principal + Simple Interest Example: ‘A’ borrows $10,000 for 3 years at 10% simple annual interest. In this example the money which is borrowed is principal ($10,000), time period is 3 years and the rate of interest charged is 10% In the above case for all the years the principal remains the same for all the three years and so on. Interest = 10000 * .10 * 3 = 3000 Amount = 10000 + 3000 = 13000 If money is kept at Simple Interest it doubles itself in 5 yrs so in how much time it will become 4 times. If we have Rs 100 in the beginning and it becomes Rs 200 in 5 yrs, Rs 100 is earned in 5 yrs. By Formula: 3*P = P* 0.2 * T => T = 3/0.2 = 15 yrs. Resources & GeoGebra - Matthew G. James, LSW HS Math. Solve Your Math Problem. Aleks review.
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What is "Annuity? " An annuity is defined as a series of equal cash amounts (cash flows, payments, deposits, etc). From your perspective, the periodic amounts represent deposits, as in, you can deposit the amounts into an interest earning account as you receive them. What is Future Value of An Annuity?