How to Calculate Simple Interest Monthly?

How do you calculate simple interest per month?

Calculate Simple Interest Monthly

Here is the simple tutorial to know how to calculate the Simple Interest value monthly.
Calculate Simple Interest Monthly
Formula
Simple Interest Monthly = (P x R x T / 12) / 100
Where,
P - Principal
R - Interest Rate
T - Time Duration of the Loan / 12 Months.
Formula For Simple Interest Monthly
Step 1: Let us assume an example to calculate the simple interest monthly payment.
Principal = Rs. 1000
Interest Rate = 2%
Time period = 6 months
Calculate Simple Interest Monthly Step1
Step 2: Substitute the values in the formula
Simple Interest Monthly = (P x R x T/12) / 100
=(1000 x 2 x 6/12)/100
=(1000 x 2 x 1/2)/100
=(1000 x 2 x 0.5) / 100
=(1000 x 1)/ 100
= 1000 / 100
Simple Interest calculated for 1 month = Rs. 10

Calculate Simple Interest Monthly Step20.5


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