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what is the formula for calculating time in simple interest. I P R T. The formula above shows simple interest not compound interest because there is only one compounding period annual.
Difference Between Simple Interest And Compound Interest In 2021 Simple Interest Compound Interest Basic Math from in.pinterest.com
Based on years or part of a year. Simple Interest 5000 105 2500. Compounding is the effect of earning interest on the interest that was previously earned.
The simple interest formula is fairly simple to compute and to remember as principal times rate times time.
When calculating simple interest by days use the number of days for t and divide the interest rate by 365. R interest rate in percentage T time duration in years. Compounding is the effect of earning interest on the interest that was previously earned. So now we will do the calculation this using the simple interest equation ie.
