From the base formula, A = P(1 + rt) derived from A = P + I and I = Prt so A = P + I = P + Prt = P(1 + rt)
Note that rate r and time t should be in the same time units such as months or years. If you enter them differently this calculator will adjust the answer accordingly. r is entered in % but converted and calculated in decimal form.
Time conversions are based on day count of 365 days/year, 30.4167 days/month and 91.2501 days/quarter.
This calculator finds A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate r% per period for t Number of Time Periods. Where r is in decimal form; r and t are in the same units of time.
The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:
A = P + I = P + (Prt), and finally A = P(1 + rt)
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