## Simple Interest

When you take an amount of money on loan, the interest can either be calculated as simple interest or as compound interest. In the case of simple interest, the calculation of interest is simple.

The principal amount, the time duration(in years, months or any other time unit) and the rate of interest(per time unit) are used for this calculation.

Although, this is the relatively simple form of interest calculation but interests by most financial institutions are not calculated by this method, as it does not take allow for using a dynamic value for principal amount. For instance, it does not take partial paybacks or compounding interests into consideration.

## $$\frac{\text{principal}*\text{rate}*\text{time}}{100}$$

The values required are p = principal, t = time, r = rate

ENTER THE VARIABLES TO BE USED IN THE FORMULA