This video explains how to determine an equivalent simple interest from a given amount of interest earned. For example 3996 divided by a current loan balance of 83828 equals 00476. For example if the simple interest rate is 5 on a loan of 1000 for a duration of 4 years the total simple interest will come out to be.
This video explains how to determine an equivalent simple interest from a given amount of interest earned.
While the total interest payable over the three-year period of this loan is 157625 unlike simple interest the interest amount is not the same for all three years because compound interest. R 5100 005 decimal. In many cases interest compounds with each designated period of a loan but in the case of simple interest it does not. Likewise to calculate simple interest month-wise use the number of months for t and divide the interest rate by 12.