Enter 3 out of 4 below
Given an initial balance of 120,
an interest rate of 5%,
and time of 7
Calculate the Accumulated Balance
using Simple Interest:
Accumulated Value formula
AV = Principal * (1 + (int. rate * time))
Plug in our values
AV = 120 * (1 + (0.05 * 7))
Simplify
AV = 120 * (1 + 0.35)
AV = 120 * 1.35
Calculate the total interest earned:
Total Interest Earned = Accumulated Value - Principal
Total Interest Earned = 162 - 120
Total Interest Earned = 42
Calculate the interest earned:
| Interest per Period = | Interest Earned |
| t |
| Interest per Period = | 42 |
| 7 |
Interest per period = 6
Final Answer
Accumulated Value using Simple Interest = 162
