| Month | Principal ($) | Value ($) | Growth ($) |
|---|---|---|---|
| Starting Value | $10000.00 | $10000.00 | $0.00 |
| Month 1 | $10000.00 | $10083.33 | $83.33 |
| Month 2 | $10000.00 | $10166.67 | $83.34 |
| Month 3 | $10000.00 | $10250.00 | $83.33 |
| Month 4 | $10000.00 | $10333.33 | $83.33 |
| Month 5 | $10000.00 | $10416.67 | $83.34 |
| Month 6 | $10000.00 | $10500.00 | $83.33 |
| Month 7 | $10000.00 | $10583.33 | $83.33 |
| Month 8 | $10000.00 | $10666.67 | $83.34 |
| Month 9 | $10000.00 | $10750.00 | $83.33 |
| Month 10 | $10000.00 | $10833.33 | $83.33 |
| Month 11 | $10000.00 | $10916.67 | $83.34 |
| Month 12 | $10000.00 | $11000.00 | $83.33 |
Simple interest is calculated only on the original principal amount, or the initial investment, and does not compound over time. This means that the interest earned each period remains constant.
Simple interest is commonly used for short-term loans or investments where interest does not accumulate on prior interest. Use this space to explain key terms, provide financial tips, or link to helpful resources for better money management.
Simple interest is calculated only on the principal amount of a loan or investment.
It is commonly used for short-term loans or investments without compounding.
Simple interest does not accumulate on previously earned interest, unlike compound interest.