Question

How do you calculate interest per year$?$

Answer 1

Interest :

Interest is a payment paid on loan property. It is the price salaried for the use of rented money, or, money earned by drop funds. The interest is calculated ahead the value of the property in the similar method as ahead money.

Equation for calculate the interest:

$\mathit{y}\left(k\right)\mathbf{=}\left[y\left(0\right){\left(1+i\right)}^k\right]\mathbf{-}{\left\{\frac{\left[{\left(1+i\right)}^k-1\right]}{i}\right\}}^{\mathbf{p}}$

where, $y\left(k\right)=$Amount

$y\left(0\right)=$Opening loan amount

$k=$Payment period

$i=$interest period

$p=$Payment