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Simple interest is interest that is calculated only on the amount of unpaid principal on a loan. Such interest is not added to the value of the loan but is tracked separately.

Compound interest is interest that is calculated on the total of unpaid principal and accumulated interest on a loan.

The difference is in simple interest there is no interest charged on accumulated interest while in compound interest there is interest charged on accumulated interest.

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Q: What is a simple interest in math?
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What is a fixed percent of the principal in math?

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What is the amout of interest that will be earned on an investment of $8000 at 10% simple interest for 3 years


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How do solve simple interest rate math problems?

If an amount C is invested for n years with an interest rate of r%, then the amount of interest earned is C*n*r/100


How do you solve interest rate math problems?

First you figure out the Principal, then you find the interest rate and then find the Time someone gave you to pay back loaned or borrowed money.Formula: Simple Interest= Principal*Rate*TimeExample: Principal-$25,000 Interest Rate- 6.25 simple interest- 6 years$25,000 x .0625 x 6= $9375!


How does a banker use math?

Bankers do all sorts of math, from simple addition and subtraction to complicated problems including compound interest, for example. Math is essential to any banking job. Today though, most of the math is done on computers, not by hand or by humans at all.


What is the Formula for simple interest rate?

The answer for rate in simple interest is =rate= simple interest\principle*time


What is the calculation for a simple compound interest rate?

There is simple interest and there is compound interest but this question is the first that I have heard of a simple compound interest.


When was Simple Math created?

Simple Math was created on -20-12-08.


What makes the simple interest simple?

It is interest on simply the original capital. After the first period, compound interest involves interest on the interest earned in previous periods and soit not simple.


Is the annual interest rate the same as simple interest?

Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.Usually no. Most institutions charge (and pay) compound interest, NOT simple interest.