Calculator Use
This simple interest calculator calculates an accrued amount that includes principal plus interest. For interest only, use the simple interest calculator.
Simple Interest Equation (Principal + Interest)
A = P(1 + rt)
Where:
- A = Total Accrued Amount (principal + interest)
- P = Principal Amount
- I = Interest Amount
- r = Rate of Interest per year in decimal; r = R/100
- R = Rate of Interest per yearas a percent; R = r * 100
- t = Time Period involved in months or years
From the base formula, A = P(1 + rt) derived from A = P + I and since I = Prt then A = P + I becomes A = P + Prt which can be rewritten as A = P(1 + rt)
Note that rate r and time t should be in the same time units such as months or years. Time conversions that are based on day count of 365 days/year have 30.4167 days/month and 91.2501 days/quarter. 360 days/year have 30 days/month and 90 days/quarter.
Simple Interest Formulas and Calculations:
Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) 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=R/100; r and t are in the same units of time.
The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:
A = P + I = P + (Prt), and finally A = P(1 + rt)
- Calculate Total Amount Accrued (Principal + Interest), solve for A
- Calculate Principal Amount, solve for P
- Calculate rate of interest in decimal, solve for r
- Calculate rate of interest in percent
- Calculate time, solve for t
FAQs
The simple interest formula is A = P ( 1 + r ) t where P represents the amount originally deposited, r is the interest rate, and A is the amount in the account at t years. Find r (as a percentage) if A=2700, P=2200, and t=5.
What is the formula for simple interest P * R * T? ›
Simple Interest is calculated using the following formula: SI = P × R × T, where P = Principal, R = Rate of Interest, and T = Time period. Here, the rate is given in percentage (r%) is written as r/100.
How do you calculate simple interest? ›
The formula to determine simple interest is an easy one. Just multiply the loan's principal amount by the annual interest rate by the term of the loan in years. This type of interest usually applies to automobile loans or short-term loans, although some mortgages use this calculation method.
How do you find P and I in simple interest? ›
Simple Interest Formulas and Calculations:
- Calculate Interest, solve for I. 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.
The continuous compounding formula is nothing but the compound interest formula when the number of terms is infinite. This formula says, when an amount P is invested for the time 't' with the interest rate is r% compounded continuously, then the final amount is, A = P ert.
What is the P-value t formula? ›
p-value = P(T ≥ t∗|T ∼ p0). In other words, the p-value is the probability under H0 of observing a test statistic at least as extreme as what was observed.
What is the P in the interest formula? ›
P = Principal balance. r = the interest rate (expressed as a decimal) n = the number of times interest compounds in a year.
What is R and T in simple interest? ›
Simple Interest formula, I = P × r × T, where I = the amount of interest earned. P = the principal – the amount of money borrowed/invested. r = the rate of interest, given as a percentage per annum (p.a) T = the time, in years, for which the money is borrowed/invested.
What is the general formula for simple interest? ›
The formula for simple interest is SI = P × R × T / 100, where SI = simple interest, P = principal amount, R = the interest rate per annum, and T = the time in years. To calculate the simple interest (SI), multiply the principal amount by the interest rate and the time in years, and then divide it by 100.
What is the formula for interest calculator? ›
The formula is: Simple Interest = Principal × Rate × Time.
FAQs on Fixed Deposit Simple Interest Formula
To calculate simple interest, the formula used is (P x r x t)/100 where P, r, and t stands for principal amount, rate of interest and tenure of the deposit in years.
What is the formula for rate of interest? ›
Formula: Simple Interest (SI) = Principal (P) x Rate (R) x Time (T) / 100. Example: If you invest $1,000 with a 5% annual interest rate for 3 years, you'd earn $150 in simple interest.
How is P and I calculated? ›
- See it in action: Say you want to buy a $350,000 home and have a 20 percent down payment ($70,000). ...
- WARNING: Math Ahead.
- Monthly P&I Payment = Principal x [Interest Rate x (1 + Interest Rate)Loan Term] / [(1 + Interest RateLoan Term-1]
- Principal Payment = Monthly P&I Payment - (Loan Balance x Interest Rate)
How do I find p-value from t?
- Left-tailed t-test: p-value = cdft,d(tscore)
- Right-tailed t-test: p-value = 1 - cdft,d(tscore)
- Two-tailed t-test: p-value = 2 × cdft,d(−|tscore|) or. p-value = 2 - 2 × cdft,d(|tscore|)
Solving A=Pert for P, we obtain P=Ae-rt which is the present value of the amount A due in t years if money earns interest at an annual nominal rate r compounded continuously.
What is the formula for P choose R? ›
The formula for the number of r-permutations of an n-set is P(n,r)=n!/(n-r)!, where ! denotes the factorial. The formula for the number of r-combinations of an n-set is C(n,r)=n!/r!( n-r)!
What's the formula to find the interest rate? ›
Formula: Simple Interest (SI) = Principal (P) x Rate (R) x Time (T) / 100. Example: If you invest $1,000 with a 5% annual interest rate for 3 years, you'd earn $150 in simple interest.
What is the formula for the rate? ›
However, it's easier to use a handy formula: rate equals distance divided by time: r = d/t. Actually, this formula comes directly from the proportion calculation -- it's just that one multiplication step has already been done for you, so it's a shortcut to learn the formula and use it.
