Your interest payments will be $5 per year no matter how many years the initial sum of money stays in a bank account.
This calculator can be used to solve various types of simple interest problems.
After one year you will have \$105, and after two years you will have \$110.
This means that you will not earn an interest on your interest.
Where r is in decimal form; r=R/100; r and t are in the same units of time.
It's free money that you earn just by keeping your money in a safe place.
The calculator will print easy to understand step-by-step explanation.
Click here to see a list of example problems that can be solved by using this calculator.
The formula for calculating simple interest is:where p is your principal, r is the annual interest rate expressed as a decimal, and i is the interest you have earned after the money has been invested for t years.
Example 1: You were a very thrifty and money-savvy child.