Introduction to simple interest:
Interest is a percentage that is charged on the principle amount for a period of a year usually when we borrowed money from the bank. Financial calculations like loans, deposits and annuities involve interest. The rate of interest is usually calculated for the yearly rate or an annual percentage rate. If the interest has been paid only for the principal alone, then it is called as simple interest.
How to use simple rate calculator:
It is very interesting to work and easy to use simple rate calculator. It performs the calculation internally and gives the output for the required input data. For example, if you want to calculate the simple interest for the principal amount of Rs. 800 at the rate 3% for 4 years in the simple rate calculator, you have to just enter the principal amount as 800, rate as 3 and time as 4 in the calculator, then the calculator performs the operations automatically and produce the output as Rs. 96. The example problem is given below to show how the simple rate calculator performs the operations.
Formulas related to simple interest:
1) Simple interest (I) = `(P*n*r)/100`
where, P = Principal
n = Number of years
r = Rate of interest per annum
2) Amount = Principal + Interest
A = P + I
3) Interest = Amount - Principal
I = A - P
4) Number of years, n = `(100*I)/(P*r)`
5) Rate of interest per annum, r = `(100*I)/(P*n)`
6) Principal, P = `(100*I)/(n*r)`
I have recently faced lot of problem while learning Pictures of a Obtuse Angle, But thank to online resources of math which helped me to learn myself easily on net.
Example problem of simple interest:
Joseph invested Rs.8,000 for 4 years at the rate of 8% per annum. Calculate the simple interest and the amount received by Joseph at the end of 4 years.
Solution:
Here, Principal, P = Rs.8000
Number of years, n = 4
Rate of interest, r = 8%
Simple interest, I = `(P*n*r)/100`
= `(8000 * 4 * 8)/100`
= Rs.2560
Amount, A = Principal + Interest
= 8000 + 2560
= Rs.10560
Interest is a percentage that is charged on the principle amount for a period of a year usually when we borrowed money from the bank. Financial calculations like loans, deposits and annuities involve interest. The rate of interest is usually calculated for the yearly rate or an annual percentage rate. If the interest has been paid only for the principal alone, then it is called as simple interest.
How to use simple rate calculator:
It is very interesting to work and easy to use simple rate calculator. It performs the calculation internally and gives the output for the required input data. For example, if you want to calculate the simple interest for the principal amount of Rs. 800 at the rate 3% for 4 years in the simple rate calculator, you have to just enter the principal amount as 800, rate as 3 and time as 4 in the calculator, then the calculator performs the operations automatically and produce the output as Rs. 96. The example problem is given below to show how the simple rate calculator performs the operations.
Formulas related to simple interest:
1) Simple interest (I) = `(P*n*r)/100`
where, P = Principal
n = Number of years
r = Rate of interest per annum
2) Amount = Principal + Interest
A = P + I
3) Interest = Amount - Principal
I = A - P
4) Number of years, n = `(100*I)/(P*r)`
5) Rate of interest per annum, r = `(100*I)/(P*n)`
6) Principal, P = `(100*I)/(n*r)`
I have recently faced lot of problem while learning Pictures of a Obtuse Angle, But thank to online resources of math which helped me to learn myself easily on net.
Example problem of simple interest:
Joseph invested Rs.8,000 for 4 years at the rate of 8% per annum. Calculate the simple interest and the amount received by Joseph at the end of 4 years.
Solution:
Here, Principal, P = Rs.8000
Number of years, n = 4
Rate of interest, r = 8%
Simple interest, I = `(P*n*r)/100`
= `(8000 * 4 * 8)/100`
= Rs.2560
Amount, A = Principal + Interest
= 8000 + 2560
= Rs.10560
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