How find interest rate?

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Solution

Answer:

The interest rate formula is used to calculate the amount of money that must be repaid on a loan as well as the interest earned on fixed deposits, mutual funds, and other investments. The interest rate formula is also useful for calculating credit card interest. The following formula can be used to compute the simple interest rate for a given amount:
\(Interest \,Rate =\frac{Simple \,Interest\times100}{Principal\times Time}\).
Types of interest

There are two types of interest levied upon:

Simple Interest

Compound Interest

Simple Interest

Simple interest is calculated by multiplying the interest rate by the principal amount and the time period which is generally in years. The S.I. formula is given as:

Simple Interest (SI) = P × T × R ⁄ 100

Compound interest

Compound interest is the interest calculated on the principal and the interest accumulated over the previous period.

The compound interest formula is given below:

Compound Interest = Amount – Principal

Here, the amount is given by:

Where,

A = amount

P = principal

r = rate of interest

n = number of times interest is compounded per year

t = time (in years)

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