Simple Interest Formula In Business Mathematics

This may seem high but remember that in the context of a loan interest is really just a fee for borrowing the money.

Simple interest formula in business mathematics. The time t is the length of time the money is deposited or borrowed. Cost of goods sold formula. P principle i daily interest rate n number of days between payments begin aligned text simple interest p times i times n textbf where. I prt becomes r i pt remember to use 14 12 for time and move the 12 to the numerator in the formula above.

Interest principal rate of interest time. To find the interest you can use this formula. Simple interest principal interest rate time. Using the simple interest formula for future value.

The rate of interest is the percent charged for the use of money. Math is an important part of managing business. Where si simple interest. R interest rate in percentage t time duration in years.

Get your calculator and check to see if you re right. Simple interest p i n where. A p 1 r t 10 000 1 0 075 8 16 000. The formula for simple interest helps you find the interest amount if the principal amount rate of interest and time periods are given.

Net income revenue expense. Get to know some commonly used fractions and their decimal equivalents area and perimeter formulas angle measurements and financial formulas including understanding interest rates and common financial acronyms to help with your business tasks. I prt where. When you know these three values the calculation is simple.

Here the 9 basic business mathematics formulas that we cannot ignore. We ll call interest i principle p rate r and time t. The interest rate r is a percent of the principal earned or paid. Si p r t 100.

Simple interest formula is given as. The principal p is the amount of money deposited or borrowed. Then i prt. To find the rate w hen interest time and principal are given.

Equity assets liabilities. The principal is the amount of money you borrow or invest. When the amount of interest the principal and the time period are known you can use the derived formula from the simple interest formula to determine the rate as follows. The amount of simple interest for rs 15 000 for 2 years is 1000 find the rate of interest.

A p pr n a p 1 r n p a 1 r n 4 000 1 6 2 p 4 000 1 6 100 2 4 000 1 06 2 4 000 1 12 3500. The business will pay back a total of 16 000.