What is the formula for calculating interest?

pricipal * rate* time

principle/rate/time

principle +rate+time

principle - rate - time

Explanation

The formula for calculating simple interest is: Interest = P * R * T.

P = Principal amount (the beginning balance).

R = Interest rate (usually per year, expressed as a decimal).

T = Number of time periods (generally one-year time periods).

Additional information:

Formulas:

ROI = (Net Income / Initial Investment) * 100

Gross Profit = Selling Price - CoGs

Gross Profit Margin = (Revenue - COGS) / Revenue * 100

Profit Margin = (Net Income / Revenue) * 100

NPV = Cash Inflow Year 1 / (1 + Discount Rate)^1 + Cash Inflow Year 2 / (1 + Discount Rate)^2 + ... + Cash Inflow Year n / (1 + Discount Rate)^n - Initial Investment