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HOW TO CALCULATE INTEREST. Form interest can take is called simple interest and is given by the formula. 1 15 U. 1601-1666j Federal Reserve System Regulation Z, 1968. Computed often is confusing, as is the manner in which the interest rate is stated. Lenders use three major methods to calculate interest charges. The formula shown below will approximate the effective annual yield interest rate of an investmentdebt where there are periodic receiptspayments of interest. Fotmula for calculation of compounded interest on deposit.
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