Simple and Compound and Continuous Interest Calculator
Enter 3 out of 4 below
Given an initial balance of 1500, an interest rate of 7%, and time of 3, calculate the Accumulated Balance using Simple Interest:
Accumulated Value formula
AV = Principal * (1 + (int. rate * time))
Plug in our values
AV = 1500 * (1 + (0.07 * 3))
Simplify
AV = 1500 * (1 + 0.21) AV = 1500 * 1.21
Accumulated Value using Simple Interest = 1815
Calculate the total interest earned:
Total Interest Earned = Accumulated Value - Principal Total Interest Earned = 1815 - 1500 Total Interest Earned = 315
Calculate the interest earned:
Interest per Period =
Interest Earned
t
Interest per Period =
315
3
Interest per period = 105
What is the Answer?
Accumulated Value using Simple Interest = 1815
How does the Simple and Compound and Continuous Interest Calculator work?
Free Simple and Compound and Continuous Interest Calculator - Calculates any of the four parameters of the simple interest formula or compound interest formula or continuous compound formula
1) Principal
2) Accumulated Value (Future Value) 3) Interest 4) Time. This calculator has 4 inputs.
What 3 formulas are used for the Simple and Compound and Continuous Interest Calculator?
Accumulated Value = Principal * (1 + (interest rate * time))
Accumulated Value = Principal x (1 + interest rate)time
What 5 concepts are covered in the Simple and Compound and Continuous Interest Calculator?
accumulated value
The total value of an investment, including principal and interest accrued
future value
the value of a current asset at a future date based on an assumed rate of growth
interest
payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
principal
The amount borrowed on a loan, before interest is charged
simple and compound and continuous interest
Simple and Compound and Continuous Interest Calculator Video
