How we calculate
Interest for each period is always calculated on the original principal — growth is linear, not exponential.
Formula used
M is the final amount, P is the principal, i is the periodic rate, and n is the number of periods.
M = P × (1 + i × n)
Practical example
R$ 1,000 at 1% monthly for 12 months generates R$ 120 in interest.
How to interpret the result
Total interest grows at a constant rate per period, unlike compound interest.
Limitations
Assumes a constant rate and does not account for taxes, fees, or inflation.