• Calculate simple interest and compound interest
• Determine annual percentage yield (APY) based on given interest scenarios
• Solve for time in compound interest calculations

Unleashing Financial Success: Mastering Interest Calculations with Kalia

We invite you to step into the shoes of Kalia, a financially savvy individual who believes in the power of understanding how her money grows and how loan interests are calculated. Kalia knows, oftentimes, there are purchases that must be made that require the use of a loan. It could be a car, home, or even braces for her child. Whether saving or borrowing money, Kalia knows it is important to understand the interest and how it’s calculated.

Simple Interest

To start, let’s imagine Kalia has a loan with a simple interest rate of [latex]4.5\%[/latex] for [latex]5[/latex] years.

Having explored the interest calculation, let’s now find out how Kalia would determine the final amount due on her loan.

For a practical example, let’s see how Kalia would calculate her total dues if she borrowed [latex]$2,000[/latex] at [latex]3\%[/latex] for [latex]3[/latex] years.

Loans or savings might not always span complete years. So, how would Kalia account for months in her interest calculations?

In another scenario, Kalia has been charged [latex]$70[/latex] in interest for [latex]6[/latex] months on a [latex]$4000[/latex] loan. Let’s find out the interest rate on this loan.