Interest

FAQ About Interest

What are simple and compound interest? Interest
2 years ago | gizem

What are simple and compound interest?

Simple interest

The formula for simple interest yield is as follows.

Simple Interest = Principal x Interest Rate x Duration

For example, when we deposit 1000 currency unit of money in the bank with 10% (0.1%) interest for 3 years.

We have 1000 x 0.1 x 3= 300 currency unit total return.

Compound interest

Total money earned at the end of the period =

Principal.(1+monthly interest)^number of periods

For example, when we deposit 1000 currency unit of money in the bank with 10% (0.1%) interest for 3 years.

1000 x (1+0.1) over 3= 1331 wire, ie 1331-1000=331 currency unit interest earnings.