- Simple interest and compound interest explained
- What is Simple and Compound interest
- Clio Manage
- Simple interest is calculated based on the principal amount (the initial amount charged to the client).
- Simple Interest = (Principle) x (Interest Rates) x (Time)
- Compound interest is calculated on the principal plus any interest accrued on the Bill.
- Compound Interest = Principal x (1+Interest)Number of Periods - Principal