Knowledge of a simple interest

Calculate simple interest rates can seem intimidating, but only a few pieces of information and calculators are necessary. First, you understand that interest is made the borrower for the loan from a lender a fee or a charge. Interest depends on a number of factors, including the most important original (i.e. the amount borrowed), time or the number of periods and interest rate for a period of time. Simple interest, rather, that interest and compound interest is loaded only on the most important original. Interest earned on the main proceedings are not considered consideration.Difficulty: ModerateInstructionsThings, need: Calculator1Start with simple interest rate formula. The formula looks like this: simple interest = rate x time. 2Enter main value X. The principal is the amount that was borrowed. For example, assume that you borrow $1,000 by the lender. Simple interest rate formula should look like this: simple interest = 1000 X x time. 3Enter value annual percentage rate numbers on the loan. Assume, that the interest of 5%. The formula should now look like the following interests: simple = 1000 X 5% x time. 4Convert the percentage of interest of a decimal number. This is achieved by the decimal separator at the scene of two numbers on the left. If your percentage is 6%, the converted form such as 0.06. If your percentage is 15%, the converted form 0.15. Use the previous example, 5%, the formula should look now like this: simple interest = 1000 x 0.05 X Time5Enter time value. Time value must be entered in the field of years. For example, a year will have a value of 1 for 18 months have a value of 1.5. Our formula assumes that our loans are repaid in 10 years. The formula will now look like the following interest rates: Sim4. 1. 1 = 1000 x0.05 x 106Calculate numbers. 1,000 x 0.05 x 10 = 500Thus, if you off the coast of a loan of $1,000 in 10 years at a rate of 5% numbers, numbers the lender a $500 in simple interest 7Determine rate Outreonal simply indicate dollars by dividing the simple interest over time. Based on our example, it would be divided by 10 years $500. This is equivalent to $50 per year. So to simple interest on a loan of $1,000 for 10 years, according to our example, a person charged pay 5% simple interest at a rate of $50 per year.