# 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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