Question

a $4,000 principal earns 5% interest, compounded annually. After 4 years, what is the balance in the account?
$500,000
$4,862.03
$4,600
$20,250

A $3,500 principal earns 3% interest, compound semiannually. After 20 years, what is the balance in the account?
$7,700
$4,713.99
$5,600
$20,250

A tractor costs $15,450 and depreciates in value by 14% per year. How much will the tractor be worth after 3 years?

Answer 1

What you can do to calculate simple interest is:
take your principle amount
Times it by your interest rate
and that = your annual amount
you then can take it a step further
and divide it by 365 (days in a year)
and that will get your daily amount
you then can times your daily amount by 30 (typical days in a month)
Now you have your annual, daily, and monthly interest amounts!