Given an initial balance of 1500,
an interest rate of 7%,
and time of 3
Calculate the Accumulated Balance
using Simple Interest:
AV = Principal * (1 + (int. rate * time))
AV = 1500 * (1 + (0.07 * 3))
AV = 1500 * (1 + 0.21)
AV = 1500 * 1.21
Total Interest Earned = Accumulated Value - Principal
Total Interest Earned = 1815 - 1500
Total Interest Earned = 315
Interest per Period = | Interest Earned |
t |
Interest per Period = | 315 |
3 |
Interest per period = 105