A P 1 i n Where. Interest Principal Rate Time which is also written as I PRT Now that we have a procedure and a formula we can solve the problem above. The Simple Interest Formula is given by Simple Interest Principal Interest Rate Time I Prt where The Principal P is the amount of money deposited or borrowed.
A P 1 i n Where.
R interest rate in percentage T time duration in years. Simple interest is calculated using the formula I P x T x R 100. A accumulated amount P principal amount i interest written as a decimal n number of years. Therefore the general formula for calculating compound interest is.