The simple calculation to work out the interest is the amount multiplied by the interest. So, in this case, the calculation would be 100000 x 0.04 (4 per cent per cent), which equals 4000.

This can be applied to any interest amount but you just need to remember the decimal point. The best thing to do to remember where the decimal point needs to be is to remember that 1.0 is the equivalent of 100 per cent per cent. So, for example; 50 per cent would be 0.5, 25 per cent would be 0.25 and so on.

When it comes to interest on loans, overdrafts, credit cards or anything associated with banks or financial institution it is usually calculated on a monthly or yearly amount (or in rare circumstances six monthly) so if you were receiving or paying 4 per cent interest per month that on £100000 then that would be £4000 or if you want to work out how much that would be per year then simply multiply the figure by 12 which would get you 48000.

If you are unsure of the interest you are paying or receiving it is always a good idea to look on the website of the institution or simply ask them. If you feel that the amount of interest you are paying is above normal and that you feel that it is higher than other places then do not be afraid to shop around for a better deal or even approach the bank or institution you are with to see if they can offer any better.

After all, they want to keep your business so don’t be afraid of asking for a better rate or if you have seen a better rate elsewhere asking them if they can better or equal that. The worse they can say is no and you won’t have lost anything if they do.

This can be applied to any interest amount but you just need to remember the decimal point. The best thing to do to remember where the decimal point needs to be is to remember that 1.0 is the equivalent of 100 per cent per cent. So, for example; 50 per cent would be 0.5, 25 per cent would be 0.25 and so on.

When it comes to interest on loans, overdrafts, credit cards or anything associated with banks or financial institution it is usually calculated on a monthly or yearly amount (or in rare circumstances six monthly) so if you were receiving or paying 4 per cent interest per month that on £100000 then that would be £4000 or if you want to work out how much that would be per year then simply multiply the figure by 12 which would get you 48000.

If you are unsure of the interest you are paying or receiving it is always a good idea to look on the website of the institution or simply ask them. If you feel that the amount of interest you are paying is above normal and that you feel that it is higher than other places then do not be afraid to shop around for a better deal or even approach the bank or institution you are with to see if they can offer any better.

After all, they want to keep your business so don’t be afraid of asking for a better rate or if you have seen a better rate elsewhere asking them if they can better or equal that. The worse they can say is no and you won’t have lost anything if they do.