Simple Dollar Math Adding Up Interest Income

We all like and need money, but how do you add up things like interest income? Do you have any interest income? Interest income is money that you earn from interest like: bank savings accounts, bank money market accounts, bank CDs, and other bank accounts. To see how much interest income you’re really earning is just a simple dollar math calculation away.

Simple Dollar Calculation for Adding Up Interest Income

• i stands for interest earn (interest income)
• p stands for principle
• r stands for the rate of interest
• t stands for time

I=Prt (Interest Income Formula)

Simple Dollar Calculation At Work

Suppose you want to invest $3,000 at 5%. How much interest income will you make per/day?
i = ?
p = $3,000
r = .05 (convert % to a decimal)
t = 1/365 (per/day)

I=$3,000 (times) .05 (times) 365

Therefore, I= $.41 (forty one cents).  This is your Interest Income per/day.

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