15-2-2

Simple Interest

kExample 2

What is the simple interest ([SI]) on a principal amount of $10,000 (PV) invested or borrowed for 120 days (Days) at 5% per annum (I%)?

•This indicates that the simple interest is $164.3835616.

Calculation Formulas

365-day Mode

SI' = Dys

⋅ PV ⋅ i

i =

 

I%

 

100

 

 

365

 

 

360-day Mode

SI' =

Dys

⋅ PV ⋅ i

i =

 

I%

360

 

100

 

SI = –SI'

SFV = –(PV + SI' )

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