Finance

Work out simple interest

How it works in Excel

• B1 is the amount.
• B2 is the yearly rate.
• B3 is the number of years.
• Interest is not added to the balance, so it never earns interest of its own.

The idea in general

You earn the same amount each year on the original sum.

What I assumed

• The amount is in B1, the rate is in B2 and the years are in B3.

Check the result on your own data before relying on it.