How Do You Do Math For Figuring Simple Interest?
Math for figuring simple interest can be important for many different reasons. It can be used when you are loaning someone money or when investing in bonds or other investments. The following article will use a personal loan as an example of how to use mat for figuring simple interest. Learn the formula. The formula is ‘I=(P*r*t)+P’. ‘I’ is the interest. ‘P’ is the principal. ‘r’ is the rate per year. ‘t’ is the term. The term can be in months, semi annual periods or years, but ultimately it is the number of times interest is calculated. Determine the variable data. For purposes of this example, we will start with a principal of $1000, an interest rate of 5% and a 7 year term. Here is the scenario; Tommy wants to give a personal loan $1000 to Jane at a rate of 5% under an agreement that it must be paid off in seven years. Multiply the Principal times the rate times the term. That is $1000 times 5% times 7 years. This comes to $350 (1000 * 5%= $50 and $50 * 7 years = $350). Jan will owe