Calculator Use
Calculate simple interest on the principal only, I = Prt. Simple interest does not include the effect of compounding.
Simple Interest Formula
I = Prt
Where:
- 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 Periods involved
Notes: Base formula, written as I = Prt or I = P × r × t where 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:
This calculator for simple interest-only finds I, the 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=R/100. r and t are in the same units of time.
- Calculate Interest, solve for I
- 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
Explanation: The simple interest formula is given by I = PRt where I = interest, P = principal, R = rate, and t = time. Here, I = 10,000 * 0.09 * 5 = $4,500. The total repayment amount is the interest plus the principal, so $4,500 + $10,000 = $14,500 total repayment.
How many years will $1200 yield an interest of $180 at 3% simple interest? ›
Rearranging the formula to solve for Time, we divide both sides of the equation by ($1,200 * 0.03): Time = $180 / ($1,200 * 0.03) = 5 years.
How is simple interest computed using the formula I PRt? ›
Calculate simple interest by using the formula I = Prt. In this formula, “I” equals the interest amount, “P” equals principal (the starting balance), “r” equals the interest rate and “t” equals the number of time periods.
What is the simple interest for $13600 at 5 for 12 months? ›
In this case, the principal amount is $13,600, the interest rate is 5% (or 0.05), and the time is 12 months (or 1 year). Substituting the values into the formula, we have: Simple Interest = $13,600 × 0.05 × 1 = $680. So, the simple interest for $13,600 at 5% for 12 months is $680.
What is the PRT in simple interest? ›
Simple interest is calculated by finding the product of the principal (P), the rate (r), and the time (t). Simple Interest. The simple interest formula is I = Prt where. I = interest earned r = annual interest rate ( stated as a decimal) P = principal t = time (in years)
How to calculate the simple interest? ›
How to Calculate Simple Interest? 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.
What is the simple interest $734 at 12% for 3 months? ›
12. $734 at 12% for 3 months SOLUTION: The simple interest is $22.02.
How long will it take $3000 to earn $60 interest at 6% simple interest? ›
It will take approximately 33.33 months to earn $60 interest at a 6% interest rate.
How long would it take $1500 to grow to $2000 at a simple interest rate of 3? ›
Example 5: What rate of simple interest is needed to get $7000 to grow to $10000 in 5 years? Therefore a rate of 8.57% is needed. Example 6: How long would it take $1500 to grow to $2000 at a simple interest rate of 3%? It would take approximately 11 years.
How to get the PRT? ›
How to Find the Rate of a Simple Interest Loan or Investment: Loan Example
- Step 1: First, we identify the total amount of simple interest accrued, I, the principal amount, P, and the number of time periods that have passed, t. ...
- Step 2: Then, we plug the values for I, P, and t into the simple interest formula: I = Prt.
The simple interest formula allows us to calculate I, which is the interest earned or charged on a loan. According to this formula, the amount of interest is given by I = Prt, where P is the principal, r is the annual interest rate in decimal form, and t is the loan period expressed in years.
What interest rate is needed for $9500 to earn $900 in 19 months? ›
Step-by-step explanation:
- \( r \) is the interest rate, - \( t \) is the time in years (19 months converted to years is \( \frac{19}{12} \)). The given interest is $900. Therefore, the interest rate needed for $9500 to earn $900 in 19 months is approximately 5%.
What is the rate when simple interest on 5000 for 3 years is 1500? ›
Thus, R=10%
At what rate of simple interest will $5000 amount to $6050 in 3 years and 4 months? ›
Solution, The rate of interest for which simple interest $5000 amounts to $6050 in 3 years, 4 months is 6.3%. Hence, the rate of interest for which simple interest $5000 amounts to $6050 in 3 years, 4 months is 6.3 %.
What is the formula to calculate interest? ›
The formula for calculating simple interest is: Interest = P * R * T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).
What is the formula for simple interest using PTR? ›
The formula for Simple Interest is PTR/100, whereP = PrincipalT = Time period in yearsR = Rate of interest per annum.
How to calculate interest on principal amount? ›
A simple interest calculator uses the formula I = P x R x T, where I is the interest earned or paid, P is the principal amount, R is the interest rate, and T is the time period.
How do you calculate interest rate using Pert? ›
A = P × ert
P = Principle or the amount of money you start with. e = Napier's number, which is approximately 2.7183. r = Interest rate and is always represented as a decimal. t = Amount of time in years.
