you find the formula... then you calculate it. Its that simple.
6.5%Formula for finding Simple InterestSI [Interest] = (P×R×T)/100P [sum] = (SI×100)/(R×T)R [Rate/year] = (SI×100)/(P×T)T [Time] = (SI×100)/(P×R)whereS.I. = Simple Interest,P = Principal or Sum of amount,R = % Rate per annum,T = Time Span
simple interest = principle (money) times the rate times the time
f(x)= mx+b for simple interest t(n)= abx for compound interest
Simple interest is obtained where you take the interest every year/set period as opposed to compund interest where interest is calculated on the previous answer.For Example: Adding 10% Interest, Starting With 100.Simple: 100, 110, 120, 130...Compund: 100, 110, 121, 133.1...
The formula for simple interest is: A=P(1+rt)
The answer for rate in simple interest is =rate= simple interest\principle*time
PxRxT 100
i=prt FACT: If an annual interest rate is given, time in the simple interest formula must be expressed in terms of years.
You need to know the principal amount, the rate and the time. Then a very simply formula for calculating interest is I = PRT where P is the principal amount, R is the interest rate and T is the period of time in years.
P(r/100)^2
There are many simple interest calculators online that you can find. I found the one at http://easycalculation.com/simple-interest.php to be simple and accurate.
The first money lender, of course!
I = prt where I = interest, p = principal, r = rate. and t = time in years.
I= Prt I=interest P=principal r=rate t=time
Simple Interest = p * i * n p is principle and i is interest rate per period and n is the number of periods. A = P(1 + r)n is for compound interest.
The formula for interest is I = rtP. Then r = I/tP, where t = 11/12. This calculates to a simple interest rate of 8.8 percent.