BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -For example, if you currently owe $500 on your credit card throughout the month and your current APR is 17.99%, you can calculate your monthly interest rate by dividing the 17.99% by 12, which is approximately 1.49%. Then multiply $500 x 0.0149 for an amount of $7.45 each month.

Detailed explanation-2: -Simple Interest Formula To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is “Simple Interest = Principal x Interest Rate x Time."

Detailed explanation-3: -Simple interest is based on the original principal amount of a loan or deposit. Compound interest, on the other hand, is based on the principal amount and the interest that accumulates on it in every period. Since simple interest is calculated only on the principal, it is easier to determine than compound interest.

Detailed explanation-4: -Here’s the simple interest formula: Interest = P x R x 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).