R interest rate expressed percentage T time duration in months or years The Formula for simple interest is used to calculate the interest amount if time and the principal amount are known. Simple Interest Formula is written as. At the end of the year we have Interest R 1 000 5 R 1 000 5 100 R 1 000 005 R 50.
Simple interest is interest calculated only on the initial amount that you invested.
Use this simple interest calculator to find A the Final Investment Value using the simple interest formula. The Formula for simple interest helps you find the interest amount if the principal amount rate of interest and time periods are given. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments. Simple interest is interest calculated only on the initial amount that you invested.