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Given an initial balance of 140,
an interest rate of 6%,
and time of 7
Calculate the Accumulated Balance
using Simple Interest:
AV = Principal * (1 + (int. rate * time))
AV = 140 * (1 + (0.06 * 7))
AV = 140 * (1 + 0.42)
AV = 140 * 1.42
Total Interest Earned = Accumulated Value - Principal
Total Interest Earned = 198.8 - 140
Total Interest Earned = 58.8
Interest per Period = | Interest Earned |
t |
Interest per Period = | 58.8 |
7 |
Interest per period = 8.4