Find a simple interest of rs 1000 kept for 2 years at 3 % rate of interest
Answers
Answer:
Investments earned on a scheme are calculated as gains accumulated against the interest accumulated. Such gains are compiled in either compound or simple interest. Interest is calculated on the principal amount.
Calculating the amount that you will gain after a certain period based on the interest is vital. If your investment accumulates funds based on the simple interest you can use a simple interest calculator. These calculators help you easily compute the total amount of funds you will be able to generate on maturity.
Simple Interest Formula
To calculate Total Maturity Amount Value:
The simple interest formula for the calculator which is utilized to compute the overall gains accumulated is represented as:
A = P(1 + rt)
here:
A represents the Total accumulated Amount (principal + interest)
P represents the Principal Amount
r represents the Rate of Interest per year in decimal; r = R/100
t represents the Time Period (months or years)
To calculate the Interest on the Investments and loans
SI= P X RX T/100