Question

What is the formula for calculating interest rates????​

Answer 1

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)

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#2 Compound Interest

Compound interest is not just calculated on the basis of the principal amount but also on the accumulated interest of previous periods. This is the reason why it is also called “interest on interest.” The formula for compound interest is as follows:

Compound Interest Formula

Where:

P = Principal amount

i = Annual interest rate

n = number of compounding periods for a year.

Unlike simple interest, the compound interest amount will not be the same for all years because it takes into consideration the accumulated interest of previous periods as well.

⚡Hope it will help you.⚡

Answer 2

Heya!

Here is ur answer....

FORMULA FOR CALUCULATIONG INTEREST RATES

$\green{}$

$\green{SIMPLE INTEREST}$

$\mathbf{ I = \frac{PTR}{100} }$

$\green{COMPOUND INTEREST}$

$\mathbf{I = P(1 + \frac{r}{100} )^{n} }$

Hope it helps