Simple interest (SI) is a quick method of calculating the interest charge on a loan. Use this simple interest calculator for you to do a loan, deposit rate calculation based on the SI formula.
Simple interest (SI) is determined by multiplying the daily interest rate by the principal amount and by the number of days that elapse between payments. Consumers who repay their loans on time or early each month will be benefited by this SI rate, as the calculation is done on daily basis. Most of the automobile loans and short-term personal loans apply this interest, whereas most mortgages do not use SI. Feel free to try this online simple interest calculator to calculate total principal plus SI on an investment or savings.
Calculate the simple interest for the loan or principal amount of Rs. 5000 with the interest rate of 10% per annum and the time period of 5 years.
P = 5000, R = 10% and T = 5 Years
Applying the values in the formula, you will get the simple interest as 2500 by multiplying the loan amount (payment) with the interest rate and the time period.