## Financial Models

Simple Interest Formula

Financial Models

Loans- Reducing balance loans
- Home loans (calculations with variable rates)
- Interest only loans and sinking funds
- Comparison interest rates
Strategies to minimise interest |

Simple interest can be calculated by using the following formula: \[I=Pin\] Where :

I = Interest

P = Principal

i = Interest rate per annum (as a decimal)

n = Time (years)

I = Interest

P = Principal

i = Interest rate per annum (as a decimal)

n = Time (years)