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The concept of calculating interest rates is quite simple and the rate calculation is not something complicated. Calculating interest rates of a loan using an online calculator is easy and intuitive. Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = The rate of interest is in percentage r% and is to be written as r/100. Principal: The principal is the amount that initially borrowed from the bank or invested.

"Interest" is the product of two factors: the intrinsic interest capacity and the extrinsic interest capacity. A simple interest calculation can be carried out easily with an online calculator that is readily available on the internet. The formula for calculating simple interest is as follows: Simple Interest = P × n × r / 100 × 1/365 Here 'P' is the principal amount, 'n' is the number of days, and 'r' is the rate of interest per annum. The formula of simple interest is divided by 365 to obtain the rate of interest for one day.

Firstly, multiply the principal P, interest in percentage R and tenure T in years. For yearly interest, divide the result of P*R*T by 100. Simple Interest Formula Divide an annual rate by 12 to get (r) if the Period is a month.

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