Simple Interest Calculator

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How to Use

  1. Enter the principal amount
  2. Enter annual interest rate (%)
  3. Enter time period in years
  4. Click Calculate to see interest amount

Simple Interest Formula

SI = (P × R × T) / 100

Example: Where P = Principal, R = Rate of interest per year, T = Time in years

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Frequently Asked Questions

What is simple interest?

Simple interest is a quick method of calculating interest charged on a principal amount, calculated only on the principal.

When is simple interest used?

Simple interest is used for short-term loans, car loans, and some personal loans where interest is calculated only on principal.

How to calculate total amount?

Total Amount = Principal + Simple Interest. This gives you the final amount to be paid or received.

Is simple interest better than compound interest?

For borrowers, simple interest is better as you pay less. For investors, compound interest is better as you earn more.

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