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Take Simple Interest quiz
The percentage of the principal that is paid over a certain period of time is called the interest rate. Interest is typically calculated over principal amount (Base Amount).
Simple Interest is considered when time period is generally less than a year. Simple interest is calculated only on principal amount and Simple interest formula is as follows
I = (P X n X r) / 100 Where I = Interest Amount P = Principal Amount n = Time period r = Rate of interest
How to calculate Interest earned? I = (P X n X r) / 100 Where I = Interest Amount P = Principal Amount n = Time period r = Rate of interest
How to calculate Principal Amount? P = (I X 100) / (n X r) Where I = Interest Amount P = Principal Amount n = Time period r = Rate of interest
How to calculate Rate of Interest? R = (I * 100) / (P X n) Where I = Interest Amount P = Principal Amount n = Time period r = Rate of interest
How to calculate time period? n = (I * 100) / (P X R) Where I = Interest Amount P = Principal Amount n = Time period r = Rate of interest
How to calculate Amount accrued i.e. principal + interest earned? I = P X ( 1 + (n X r) / 100) Where I = Interest Amount P = Principal Amount n = Time period r = Rate of interest
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