Simple Interest Rate Calculator
Simple interest rate calculator helps you to find the rate of interest on an amount with a specific interest, time, and principal within seconds.
What Is Simple Interest Rate Calculator?
Simple interest rate calculator helps you to find the rate of interest on an amount with a specific interest, time, and principal within seconds.
Simple Interest Rate Calculator
How to Use the Simple Interest Rate Calculator?
Follow these simple steps to use the simple interest rate calculator:
- Step 1: Enter the values of simple interest amount, principal amount and time in the space provided.
- Step 2: Click on "Calculate".
- Step 3: The rate of interest will be displayed.
- Step 4: Click on "Reset" to clear the fields and enter a new set of values.
How to Calculate Simple Interest Rate?
Simple interest is a quick and easy method to calculate interest on the money. In the simple interest method, interest always applies to the original principal amount, with the same rate of interest for every cycle. Rate is the rate of interest at which the principal amount is given to someone for a certain time, the rate of interest can be 5, 10, or 13, etc.
Rate of interest is the percentage at which the principal amount is given to someone for a certain time. The rate of interest is denoted by R and its value is always in percentage.
To calculate the rate of interest, we apply the following formula:
R = (100 × S.I.)/(P × T) %
Solved Examples on Simple Interest Rate Calculator
Example 1:
Find the rate of interest on the principal amount of $500 if it is given on simple interest for 2 years and the interest amount is $30.
Solution:
Here, principal amount is $500 and simple interest amount is $30.
And given time period is 2 years.
To find the rate of interest, we are going to use the above formula. Let's see how:
R = (100 × S.I.)/(P × T) %
R = (100 × 30)/(500 × 2) %
R = 3000/1000 %
R = 3%
∴ Rate of interest is 3%.
Example 2:
Find the rate of interest on the principal amount of $1000 if it is given on simple interest for 1 year and the interest amount is $20.
Solution:
Here, principal amount is $1000 and simple interest amount is $20.
And given time period is 1 year.
To find the rate of interest, we are going to use the above formula. Let's see how:
R = (100 × S.I.)/(P × T) %
R = (100 × 20)/(1000 × 1) %
R = 2000/1000 %
R = 2%
∴ Rate of interest is 2%.
Example 3:
Find the rate of interest on the principal amount of $3500 if it is given on simple interest for 3.5 years and the interest amount is $45.
Solution:
Here, principal amount is $3500 and simple interest amount is $45.
And given time period is 3.5 years.
To find the rate of interest, we are going to use the above formula. Let's see how:
R = (100 × S.I.)/(P × T) %
R = (100 × 45)/(3500 × 3.5) %
R = 4500/12250 %
R = 0.367%
∴ Rate of interest is 0.367%.
Now, use the above calculator to find the rate of interest with the following values:
- Simple Interest= $700, Principal= $40000 and Time= 4 years
- Simple Interest= $55, Principal= $4800 and Time= 3 years
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