Question

Interest is calculated on the share of which value

Answer 1

Simple Interest Equation (Principal + Interest)

A = P(1 + rt)
Where:

A = Total Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

r = Rate of Interest per year in decimal; r = R/100

R = Rate of Interest per year as a percent; R = r * 100

t = Time Period involved in months or years

From the base formula, A = P(1 + rt) derived from A = P + I and I = Prt so A = P + I = P + Prt = P(1 + rt)
Note that rate r and time t should be in the same time units such as months or years. Time conversions that are based on day count of 365 days/year have 30.4167 days/month and 91.2501 days/quarter. 360 days/year have 30 days/month and 90 days/quarter.

Simple Interest Formulas and Calculations:

Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods.  Where r is in decimal form; r=R/100; r and t are in the same units of time.
The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:
A = P + I = P + (Prt), and finally A = P(1 + rt)

Calculate Total Amount Accrued (Principal + Interest), solve for A

A = P(1 + rt)

Calculate Principal Amount, solve for P

P = A / (1 + rt)

Calculate rate of interest in decimal, solve for r

r = (1/t)(A/P - 1)

Calculate rate of interest in percent

R = r * 100

Calculate time, solve for t

t = (1/r)(A/P - 1)

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