How Simple Interest Works: An Example Suppose you take out a $5,000 loan at 6% interest for two years. To calculate the amount of interest you will pay, use the simple interest formula above.

Many big banks offer shockingly low interest rates on savings accounts. Moving your money to a smaller institution could bring better returns.

Many lenders will require you to write a business plan to support your loan application. Though every business plan is different, there are a number of sections that appear in every business plan.

To decide which type of CD is best for you, consider its value. Here’s how to calculate CD interest, helping you better manage your hard-earned money.