It is determined by multiplying the daily interest rate by the principal amount and the number of days. Get your calculator and check to see if youre right. In the example shown the formula in C8 is.
In simple in it also written as Simple Interest rate PRT100.
Simple Interest 5000 105 2500. Simple interest is a quick and easy method of calculating the interest on a sum of Amount. Simple Interest Principal Interest Rate Time Period. C5 C7 C6.