Simple & Compund Interest

Question 1

What is the simple interest equation?

Answer 1

amount x interest(fraction to decimal) x years = interest

Question 2

Example question:

£400, 5 years 20%. How much do I have at the end of 5 years?

Answer 2

£400 x 0.2(20/100) x 5 = £400interest

Question 3

What is the compound interest formula?

Answer 3

amount x percentage*year= compound interest

Question 4

Example question:

£240 , 1.1 , 2 years

Answer 4

240 x 1.1*2=290.4