Mon

08

Apr

2013

Simple Interest

Simple Interest Formulas and Calculations:

Formulas involving simple interest where P is the Principal amount of money to be invested at an Interest Rate r% per period for t Number of Time Periods. Where r is in decimal form; r and t are in the same units of time.

  • Calculate Interest
    • I = Prt
  • Calculate Principal Amount, solve for P
    • P = I / rt
  • Calculate rate of interest in decimal, solve for r
    • r = I / Pt
  • Calculate rate of interest in percent
    • R = r * 100
  • Calculate time, solve for t
    • t = I / Pr


Principal + Interest: A = P(1 + rt) 

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