How do you calculate simple interest earned?
Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. The rate of interest is in percentage r% and is to be written as r/100.
How do I calculate monthly interest rate in Excel?
=PMT(17%/12,2*12,5400) The rate argument is the interest rate per period for the loan. For example, in this formula the 17% annual interest rate is divided by 12, the number of months in a year. The NPER argument of 2*12 is the total number of payment periods for the loan. The PV or present value argument is 5400.
What is the rate formula in Excel?
The RATE function is a financial function in Excel that calculates the interest rate per period of an annuity. The function is used to calculate the periodic interest rate, which can then be multiplied as required to calculate the annual interest rate. The function calculates by iteration.
How do you calculate simple interest in 6 months?
Expert-verified answer question
- If P be any sum and r% be it’s rate of Interest per annum for t years, then interest in t years be.
- Interest ( I ) = ( Ptr ) / 100.
- Given, Sum = Rs 6400.
- Time = 6 months = 1/2 year.
- Rate = 10% p.a.
- So, interest in 6 months.
- = (Sum * Time * Rate) / 100.
- = Rs { 6400 * ( 1 / 2 ) *10 } / 100.
What is the meaning of 12% interest?
If an individual borrows 100 rupees at 1 rupee interest, for instance, he must pay 1 rupee interest per month. So in one year, he has to pay Twelve rupees. Hence, 1 rupee interest on 100 rupees indicates that the interest rate is 12%.
What is the formula for simple interest earned?
Interest earned according to this formula is called simple interest. The formula we use to calculate simple interest is I = P rt I = P r t. To use the simple interest formula we substitute in the values for variables that are given, and then solve for the unknown variable. It may be helpful to organize the information by listing all four
What are the steps to calculate simple interest?
To calculate simple interest, start by multiplying the principal, which is the initial sum borrowed, by the loan’s interest rate written as a decimal. Then, multiply that number by the total number of time periods since the loan began to find the simple interest.
What is the formula to calculate simple interest?
– Simple Interest = INR 100,000 * (1 + 8% * 2) – Simple Interest = INR 100,000 * 1.16 – Simple Interest = INR 116,000
How do you use the formula for simple interest?
The formula for simple interest is I=prt. I, p, r, and t are the variables in the formula. I is a variable that represents interest earned. I is a variable that represents interest earned. I=243. p is a variable that represents the amount of money invested. This is our unknown value.