Mathematical Reasoning
Unit 11 - Simple & Compound Interest and Annuities. Simple Interest. Simple interest is interest that is not compounded. Example: If you are paid 5% simple interest per year on $1000 in a bank account, you would be paid 5% of 1000 = 0.05 X 1000 = $50 per year. Note that you always convert the percent into a decimal when doing the calculation. ................
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