Speed Calculation of Interest and Percentages Interest is the amount of money added to or subtracted from an initial amount to calculate the final amount...
Interest is the amount of money added to or subtracted from an initial amount to calculate the final amount. It is often expressed as a percentage of the original amount.
Speed calculation of interest refers to finding the speed at which an amount of money is growing or shrinking over a given period. This speed can be calculated by dividing the change in interest by the change in time.
Formula:
Speed = Change in interest / Change in time
Examples:
If an amount of 25. The speed of growth would be 5/5 = 1, meaning that the amount grew by 100% per year.
If an amount of 100. The speed of growth would be 10/10 = 1, meaning that the amount grew by 100% per year.
Percentage is another way to express the rate of growth or decay. It is calculated by dividing the change in interest by the original amount and multiplying by 100.
Formula:
Percentage = (Change in interest / Original amount) x 100
Examples:
If the annual interest earned is 100, the percentage of growth would be (25/100) x 100 = 25%.
If the original amount was 10, the percentage of growth would be (10/100) x 100 = 10%.
Key takeaways:
Speed of growth = Change in interest / Change in time
Percentage of growth = (Change in interest / Original amount) x 100