Question

What is the formula to calculate interest?

Answer 1

The formula to calculate the simple and compound interest are:

Simple Interest:

$SimpleInterest=\frac{PTR}{100}$

Where, $P$ is the principal amount, $T$ is the time period, and $R$ is the interest rate.

Compound Interest:

$CompoundInterest=P{\left[1+\left(\frac{r}{n}\right)\right]}^{nt}-P$

Where, $P$ is the principal amount, $t$ is the time period, $r$ is the interest rate, and $n$ is the number of times interest is compounded per year