Question

How do you calculate simple interest in months?

Answer 1

Explanation of how to calculate simple interest in month :

$$\begin{gathered} Formulaofsimpleinterest\mathbf{(}\mathit{S}\mathbf{.}\mathit{I}\mathbf{)}\mathbf{}\mathbf{}\mathbf{=}\mathbf{}\mathbf{}\mathbf{}\frac{\mathbf{P}\mathbf{\times }\mathbf{R}\mathbf{\times }\mathbf{T}}{\mathbf{100}} \\ Where, \\ P=Principal \\ R=RateofInterestin\%perannum \\ T=Timeinyears \end{gathered}$$

To convert T ( in years ) into months

We know ,

$$\begin{gathered} \Rightarrow 12months=1year \\ \Rightarrow 1month=\frac{1}{12}years \end{gathered}$$

Therefore, in place of T we will put $\frac{T}{12}$in S.I formula to calculate in months

$$\begin{gathered} Hence,Formulaof\mathit{S}\mathbf{.}\mathit{I}\mathbf{}\mathit{i}\mathit{n}\mathbf{}\mathit{m}\mathit{o}\mathit{n}\mathit{t}\mathit{h}\mathit{s}\mathbf{=}\mathbf{}\mathbf{}\mathbf{}\frac{\mathbf{P}\mathbf{\times }\mathbf{R}\mathbf{\times }\mathbf{T}}{\mathbf{100}\mathbf{*}\mathbf{12}} \\ Where, \\ P=Principal \\ R=RateofInterestin\%perannum \\ T=Timeinmonths \end{gathered}$$

Hence, the simple interest in months is calculated by using this formula $\frac{\mathbf{P}\mathbf{\times }\mathbf{R}\mathbf{\times }\mathbf{T}}{\mathbf{100}\mathbf{\times }\mathbf{12}}$