15-2-1

Simple Interest

15-2 Simple Interest

Simple Interest lets you calculate interest (without compounding) based on the number of days money is invested.

Simple Interest FieldsThe following fields appear on the Simple Interest calculation page.
Field

Description

DaysNumber of days in investment period

I%

Annual interest rate (as a percent)

PV

Present value (initial investment)

SI

Calculates and displays simple interest
SFVCalculates and displays simple future value (principal + interest)
Financial Application Default Setup for ExamplesYou can use the [Format] tab to change the following setting.Days in Year: 365 dayskExample 1

What is the final value ([SFV]) after five years (1,825 days) of a $300 investment (PV) earning 6.0% simple interest (I%)?

(1)Tap [Calculations] and then [Simple Interest].(2)Input 1825 (or 5 × 365) for Days.(3)Input 6 for I%.(4)Input −300 for PV.(5)Tap the [SFV] button.This indicates a final value of $390.

Tip

Tapping the [SI] button shows the interest earned.

To find the interest earned on $3,000 instead of $300, change −300 to −3000 and tap the [SI] button again.

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