Explain What Is The Formula For Calculating Interest Rate?

1.	Explain What Is The Formula For Calculating Interest Rate?
Answer» There are TWO TYPES of interest which can be calculated using a different FORMULA Simple Interest COMPOUND Interest To calculate simple interest, formula used is (PX RX T)/ 100 Where P is the principal amount, R is for the rate of interest and t is for time Formula for calculating compound interest is P X (1 + r/100) ^t There are two types of interest which can be calculated using a different formula Simple Interest Compound Interest To calculate simple interest, formula used is (PX RX T)/ 100 Where P is the principal amount, R is for the rate of interest and t is for time Formula for calculating compound interest is P X (1 + r/100) ^t

Answer»

There are TWO TYPES of interest which can be calculated using a different FORMULA

Simple Interest
COMPOUND Interest

To calculate simple interest, formula used is (PX RX T)/ 100

Where P is the principal amount, R is for the rate of interest and t is for time Formula for calculating compound interest is P X (1 + r/100) ^t

There are two types of interest which can be calculated using a different formula

Simple Interest
Compound Interest

To calculate simple interest, formula used is (PX RX T)/ 100

Where P is the principal amount, R is for the rate of interest and t is for time Formula for calculating compound interest is P X (1 + r/100) ^t

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