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Given an initial balance of 8000,
an interest rate of 1.1%,
and time of 6
Calculate the Accumulated Balance
using Simple Interest:
AV = Principal * (1 + (int. rate * time))
AV = 8000 * (1 + (0.011 * 6))
AV = 8000 * (1 + 0.066)
AV = 8000 * 1.066
Total Interest Earned = Accumulated Value - Principal
Total Interest Earned = 8528 - 8000
Total Interest Earned = 528
Interest per Period = | Interest Earned |
t |
Interest per Period = | 528 |
6 |
Interest per period = 88