A gets at the end of the term ie after 2 years. Rate of interest per year R 10. The total amount accrued principal plus interest from simple interest on a principal of 1000000 at a rate of 3875 per year for 5 years is 1193750.
So in all the above cases the repayment amount will be 16250 comprising of principal Simple Interest for 3 Years 125003750.
Finance for Non Finance Managers Course 7 Courses Investment Banking Course 117 Courses 25 Projects Financial Modeling Course 3 Courses 14 Projects So Interest Amount using simple interest rate formula will be. Time is 2 years. Amount SI P. For the above calculation you have 450000 to invest or borrow with a rate of 95 percent for a six-year period of time.