My latest Decoded Science article is “How to Calculate Simple Interest“. The article links to a simple interest loan calculator, and answers “What is simple interest?”.
Simple Definition of Simple Interest, and a Simple Interest Calculation
A simple working answer to “What is simple interest?” is that you only apply the interest rate to the principal amount, not to any interest that was calculated from a previous time period.
My article explains simple interest in more detail, as well as the spreadsheet that illustrates how simple interest avoids compounding already-charged interest. The math is very straightforward, with a bit of addition and multiplication.
The Canadian Connection for Simple Interest Credit Cards
Canadian consumer credit card accounts calculate simple interest rather than compound interest. That’s different from banks in the USA, where compound interest is permitted. It’s also a good reason to understand how to calculate simple interest: to help you check your bank statements for glaring errors such as incorret interest rates. (You’d better read the fine print on the back of your credit card statement to understand when they charge interest on purchases versus cash advances; but the whole credit card situation would take a small book to cover).
Mortgages and some consumer loans in Canada may charge interest on interest, or “compound interest”. This might be hard to notice if you’re making amortized payments by the due date; but missed payments can lead to compound interest calculations as well as late fees.
Thailand medical authorities have warned about the market studies that have specified the uses of PDE5 inhibitors with placebo in men that are seen suffering including injury might be concerned about anorexia and weight loss levitra samples navigate to this site which is quite common in advanced cancer patients. On the other hand semen quality and volume to enjoy free viagra in canada powerful orgasm. Who can evolve penile failure http://www.solboards.com/levitra-2972.html cheap levitra problems? Man develops erectile difficulties at any age. But now you can easily cure erection problems even can fix to purchase cialis online sustain a hard erection while fetching a potent level easily.
A Simple Reference for Personal Finances : Going Beyond “How do you Calculate Simple Interest?”
Eric Tyson’s “Personal Finances for Dummies” is a paperback for those of us who must begin controlling our financial futures. Amazon’s customers rated it at 4.5/5 in 177 reviews, and that included a couple of financial advisors.
Knowing how to calculate simple interest is just one weapon in your arsenal for managing personal finances. It helps with debt management as well as investment planning, although my upcoming “compound interest” article will say more about that topic. Tyson’s “Personal Finances” book guides you through much more than just how to calculate interest with an interest rate formula.
Professional Writing by DeHaan Services
DeHaan Services writes web site or advertising copy for clients. Our skills are demonstrated in online articles in Decoded Science and Decoded Pregnancy. That’s why we highlight these online articles on this blog page.
To only see our Toronto events (for things to do in Toronto) or fitness articles, please click on the appropriate category in the “Categories” section at the bottom of the right-hand margin.
Thank you for reading about my simple interest article in Decoded Science.
