On the Mathematics Corner: Calculation of Simple Interest
Published on ginnyent.net on 28th May, 2019
In the next few weeks, we would be discussing a topic that’s very itchy to the ears of finance managers, bankers, accountants, all those dealing with loans and even those aspiring for these professions.
Simple interest as the term implies is the empirical way of determining the money/value which accrued to a particular investment over time, usually at a stated rate.
In simple interest, the initial money invested is the ‘principal.’ The time for the investment could be in days, weeks, months or years; and the ‘rate’ of interest is usually in percentage.
We would discuss it in detail and solve typical examples.