Question

How do I calculate simple interest rate?

Answer 1

Simple interest is calculated using the following formula:

$\mathit{S}\mathit{I}\mathbf{=}\mathit{P}\mathbf{\times }\mathit{R}\mathbf{\times }\mathit{T}\mathbf{,}$ where

$$\begin{gathered} P=principal,R=rateofinterest \\ andT=timeperiod \end{gathered}$$

Here, the rate is given in percentage $\left(R\%\right)$ is

written as $\frac{R}{100}$. And the principal is the sum of money that

remains constant for every year in the case of simple interest.