Question

How to calculate intrest

Answer 1

To calculate simple interest, you can use a specific formula:

I (interest) = p (principal) x r (rate) x t (time)

Important: Rate is always a decimal, and time must be a compatible unit that matches with the rate (months, years, etc.).

Answer 2

You can calculate Interest on your loans and investments by using the following formula for calculating simple interest: Simple Interest= P x R x T ÷ 100, where P = Principal, R = Rate of Interest and T = Time Period of the Loan/Deposit in years.

Formula: Simple Interest=P×r×t where: P=Principal amount; r=Annual interest rate; t=...

Principal Amount: Principal Amount remains constant on Simple Interest

Meaning: Simple Interest is calculated on the Principal Amount for the entire tenure

Calculation: It is easy to calculate Simple Interest