Some Simple Interest Models

Tanka Milkova

University of Economics – Varna (Bulgaria)

Abstract. In this paper some aspects of financial mathematics and in particular some problems for simple interest are examined. As we know, the classical formula for simple interest is based on the assumption for constant initial investment and constant interest rate. The present study is mainly methodological and it examines three additional simple interest models – constant investment and variable interest rate, variable investment and constant interest rate, variable investment and variable interest rate. Some formulas are outlined – they can be used for educational purposes and for solving practical problems.

Keywords: simple interest; financial calculations; percentages

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