Calculating Simple Interest is an excellent method to judge your savings in advance. However, calculating it for various interests and principal sums could be complex. This is where Excel comes to ...

What is Simple Interest? Definition, Formula, and Examples Story by [email protected] (Libby Kane, CFEI) • 6mo ...

The formula for simple interest is principal times the interest rate times the period. Usually period is expressed as a fraction of 12. For example, one month of interest will be 1/12.

Therefore, the simple interest on Rs. 78,000 at 10% per annum for 9 years will be Rs. 70,200. So, now you know that calculating Simple Interest is as easy as ABC.

In the above formula, P stands for the principal value, R is the rate of interest, and n is total time. Here, we will learn to calculate compound interest using Excel.

Multiply the deposit amount by the interest rate by the period of time the deposit earns interest. In the example, $1,000 times 5 percent times 0.5 equals $25.