What is the formula to calculate interest on a loan?
Great question, the formula loan calculators use is I = P * r *T in layman's terms Interest equals the principal amount multiplied by your interest rate times the amount in years. Where: P is the principal amount, $3000.00. r is the interest rate, 4.99% per year, or in decimal form, 4.99/100=0.0499.
How do I calculate my interest?
Here's the simple interest formula: Interest = P x R x 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).
How do I calculate 8% interest on a loan?
Simple Interest Formula.
(P x r x t) ÷ (100 x 12) ... .
Example 1: If you invest Rs.50,000 in a fixed deposit account for a period of 1 year at an interest rate of 8%, then the simple interest earned will be: ... .
Example 1: Say you borrowed Rs.5 lakh as personal loan from a lender on simple interest..