Simple Interest

So what is difference between compound and simple interest?

  • With simple interest, you do not apply interest to your accrued earnings
  • It is like "spending" each penny of interest everytime it was placed in your bank account
Present Value (Principal Amount):$
Annual Interest Rate  %
How many years?  
Based on Principal Amount of $1000, at an interest rate of 7.5%, over 10 year(s):

Total Value = $1750

Total Interest = $750