There are few ways to calculate your investment Future Value lol. When you want to calculate the number of days using simple interest method, you see ah, you take Future Value (FV) and Present Value (PV) lol, then use the formula Days = (FV/PV – 1) x (mode/r). Then hor, if loo mai calculate Annual Interest Rate, loo can apply this formula, Interest Rate = (FV/PV – 1) x (mode/days). Whereas for Present Value calculation hor, loo can use this formula PV = FV / (1 + (r x (days/mode))). Lastly, to get Future Value, loo just use FV = PV + I, where I is PV x r x (days/mode). Simple interest method got many different mode to use like annually, monthly, weekly, or daily, so must choose correctly ah. Eh sai boh?
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Calculating Days Elapsed Using the Simple Interest Method
To calculate the number of days elapsed using the simple interest method, use the following formula:
$$Days=(FVPV−1)×(moder)\text{Days} = \left(\frac{FV}{PV} – 1\right) \times \left(\frac{\text{mode}}{r}\right)$$
Where:
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- FV = Future Value
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- PV = Present Value
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- mode = Time mode (e.g., annually 365 days, monthly 30 days, weekly 7 days, daily 1 day)
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- r = Interest rate
Calculating the Annual Interest Rate Using the Simple Interest Method
To calculate the annual interest rate using the simple interest method, use the following formula:
$$Interest Rate=(FVPV−1)×(modedays)\text{Interest Rate} = \left(\frac{FV}{PV} – 1\right) \times \left(\frac{\text{mode}}{\text{days}}\right)$$
Where:
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- FV = Future Value
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- PV = Present Value
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- mode = Time mode (e.g., annually 365 days, monthly 30 days, weekly 7 days, daily 1 day)
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- days = Number of days
Calculating Present Value Using the Simple Interest Method
To calculate the present value using the simple interest method, use the following formula:
$$PV=FV1+(r×daysmode)\text{PV} = \frac{FV}{1 + (r \times \frac{\text{days}}{\text{mode}})}$$
Where:
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- FV = Future Value
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- PV = Present Value
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- mode = Time mode (e.g., annually 365 days, monthly 30 days, weekly 7 days, daily 1 day)
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- r = Interest rate
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- days = Number of days
Calculating Future Value Using the Simple Interest Method
To calculate the future value using the simple interest method, use the following formula:
$$FV=PV+I\text{FV} = PV + I$$
Where the interest (I) is calculated as:
I=PV×r×(daysmode)I = PV \times r \times \left(\frac{\text{days}}{\text{mode}}\right)
Where:
- FV = Future Value
- PV = Present Value
- mode = Time mode (e.g., annually 365 days, monthly 30 days, weekly 7 days, daily 1 day)
- r = Interest rate
- days = Number of days
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