Simple Interest (Present Value)
Simple interest is when interest is not re-invested.
Simple interest is the interest that is calculated from just the original amount.
This is an example of an Arithmetic Sequence where a series of numbers differs by a fixed amount.
Annual Simple
If you receive £50 in 3 years time what is this worth today if the interest rate is 6% with no compounding?
If you receive £50 in 185 days time what is this worth today if the interest rate is 6% with no compounding?
Semi-Annual Simple
The following formula can be used to calculate the present value of an amount that accumulates simple interest twice a year.
Quarterly Simple
The following formula can be used to calculate the present value of an amount that accumulates simple interest quarterly.
Monthly Simple
The following formula can be used to calculate the present value of an amount that accumulates simple interest monthly.
Daily Simple
The following formula can be used to calculate the present value of an amount that accumulates simple interest daily.
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