Simple Interest and Compound Interest (HSC SSCE Mathematics Standard): Flashcards

Money earned from lending/investing or paid when borrowing

Fixed % of original principal only

$I = Prn$

Principal (initial amount)

Rate per time period as a decimal

$A = P + I$

Interest on principal plus accumulated interest

$A = P(1 + r)^n$

$I = A - P$

Divide by 100 (e.g., $5\% = 0.05$)