2007-06-11 21:25:32 · 4 answers · asked by akshay k 2 in Science & Mathematics ➔ Mathematics
the formula is:
Rate x principle x time / 100 = simple interest
2007-06-11 21:32:01 · answer #1 · answered by pallavi m 2 · 0⤊ 0⤋
I = P.R.N where I is the simple interest, P is the principal (amount originally taken), R the annual rate of interest, and N the number of years. If R is in percentage, we need to divide the above by 100.
A simple example will probably be useful:
1000 dollars is deposited in a bank at a simple annual interest rate of 5% for 10 years. What is the interest accumulating at the end of that period?
I = 1000 X 5 X 10 / 100 = 500 dollars
2007-06-11 21:38:33 · answer #2 · answered by Swamy 7 · 0⤊ 0⤋
Simple interest = Simple interest rate x Principal x Time Period
For eg, suppose you put $10 000 in a bank and the simple annual interest rate is 5%. After 5 months, however, you decide to take all your money out. The interest it would earn after 5 months would be:
Interest = 10 000 x 0.05 x 5/12 = $208
2007-06-11 21:41:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
simple interest equals princiapal multiplied by rate by time
2007-06-13 11:57:46 · answer #4 · answered by don_one21 1 · 0⤊ 0⤋