To calculate a monthly interest rate divide the annual rate by 12 to reflect the 12 months in the year. Simple interest and compound interest. Therefore the accrued interest is 525.
Compound interest or interest on interest is calculated with the compound interest formula.
For the above calculation you have 450000 to invest or borrow with a rate of 95 percent for a six-year period of time. We typically use years as a measure of. I stands for the amount paid in interest that monthyearetc. In the formula A represents the final amount in the account that starts with an initial principal P using interest rate r for t years.