Definition §

Simple Interest

Simple interest takes the value at the start of the investment, and never updates (Compounds) the interest, e.g. 200 is given on the first year, and it is still a flat $200 per year even on the fifth year.

Simple Interest Formula §

Where; = Simple Interest = Principal (Starting Amount) = Interest rate in the context of , e.g. 8.4% p.a. is 0.084 if is 1 year, but if is 12 months = Time Period (how many years / months etc.)