I= Prt
I=interest
P=principal
r=rate
t=time
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i=prt FACT: If an annual interest rate is given, time in the simple interest formula must be expressed in terms of years.
The answer for rate in simple interest is =rate= simple interest\principle*time
Annual Interest Rate divided by 12= Monthly Interest Rate
It depends on whether it is simple or compound interest. The formula for simple interest is A = P(1+rt), where A = amount of money after t years, P = Principal, or the amount of money you started with, and r = the annual interest rate, expressed as a decimal (i.e. 7% = 0.07). For compound interest, the formula is A = P(1+r)t.
The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.