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Simple Interest Calculator I = Prt

Simple Interest Calculator
Where: I = Prt

Answer:
I = $ 1,937.50

Equation:
I = Prt

Calculation:
First, converting R percent to r a decimal
r = R/100 = 3.875%/100 = 0.03875 per year,
then, solving our equation

I = 10000 × 0.03875 × 5 = 1937.5
I = $ 1,937.50

The simple interest accumulated
on a principal of $ 10,000.00
at a rate of 3.875% per year
for 5 years is $ 1,937.50.

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Calculator Use

Calculate simple interest on the principal only, I = Prt. Simple interest does not include the effect of compounding.

Simple Interest Formula

I = Prt

Where:

  • 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 Periods involved

Notes: Base formula, written as I = Prt or I = P × r × t where 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:

This calculator for simple interest-only finds I, the simple interest 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.

  • Calculate Interest, solve for I
    • I = Prt
  • Calculate Principal Amount, solve for P
    • P = I / rt
  • Calculate rate of interest in decimal, solve for r
    • r = I / Pt
  • Calculate rate of interest in percent
    • R = r * 100
  • Calculate time, solve for t
    • t = I / Pr


 

Cite this content, page or calculator as:

Furey, Edward "Simple Interest Calculator I = Prt"; from http://www.calculatorsoup.com - Online Calculator Resource.

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