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Interest Calculation Formulas Explained

The document provides formulas for computing simple interest, compound interest, and future and present value with simple interest. Simple interest is calculated as A = P (1 + rt), where A is the total amount, P is the principal, r is the interest rate, and t is the time period. Compound interest is calculated as A = P (1 + r/t)^t, where r/t is the periodic interest rate. Future value with simple interest is calculated as F = P (1 + rt). Present value with simple interest uses the inverse of the future value formula.

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ClarkKent Fabro Batucan
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298 views1 page

Interest Calculation Formulas Explained

The document provides formulas for computing simple interest, compound interest, and future and present value with simple interest. Simple interest is calculated as A = P (1 + rt), where A is the total amount, P is the principal, r is the interest rate, and t is the time period. Compound interest is calculated as A = P (1 + r/t)^t, where r/t is the periodic interest rate. Future value with simple interest is calculated as F = P (1 + rt). Present value with simple interest uses the inverse of the future value formula.

Uploaded by

ClarkKent Fabro Batucan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Research the formula to compute for:

Simple Interest- A = P (1 + rt)


Compound Interest: A = P (1 +r/t)
Future Value with Simple Interest: F = P (1 +rt)

Present Value Simple Interest:

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