No matter how long the deposit period of the fund is, it only charges interest on the principal, and the next interest period does not charge interest on previous periods.
The calculation formula of simple interest is: interest (I)= principal (P)× interest rate (i)× number of interest-bearing periods (n).
When calculating interest, unless otherwise specified, the interest rate given refers to the annual interest rate. Less than one year's interest, one year is equal to 360 days.
Calculation of present value of simple interest:
In real economic life, it is sometimes necessary to determine its present value according to the final value, that is, the present value. For example, when an unexpired bill is used to apply to a bank for discount, the bank deducts the accrued interest of the bill from the borrowing date to the maturity date at a certain interest rate, pays the remaining amount to the holder, and transfers the bill to the bank.
The interest rate used in discount is called discount rate, the calculated interest is called discount interest, and the balance after deducting discount interest is called present value.