Financial Models
Simple Interest Formula

Financial Models

Investments

• Simple interest formula
• Compound interest formula
• Compound interest {TI-84 Plus CE}
• Future value annuities
• Effective rates of interest
• Taxation
• Inflation
• Superannuation​​

Loans

• Reducing balance loans
• Home loans (calculations with variable rates)
• Interest only loans and sinking funds
• Comparison interest rates

Strategies to minimise interest

• Making larger repayments
• Making more frequent repayments
• Reducing the term of the loan
• Changing interest rates
• Making lump-sum payments
• ​Using an offset account​​

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)