ECONOMICS

Detailed explanation-1: -For example, the simple interest earned on an investment of Rs 1 lakh for a period of 1 year at 12% interest rate is Rs 12, 000.

Detailed explanation-2: -Great question, the formula loan calculators use is I = P * r *T in layman’s terms Interest equals the principal amount multiplied by your interest rate times the amount in years. Where: P is the principal amount, $3000.00. r is the interest rate, 4.99% per year, or in decimal form, 4.99/100=0.0499.

Detailed explanation-3: -"12% interest” means that the interest rate is 12% per year, compounded annually. “12% interest compounded monthly” means that the interest rate is 12% per year (not 12% per month), compounded monthly.

Detailed explanation-4: -If you have availed a loan of Rs. 10 Lakh from a lending institution at an interest rate of 10.50% for a tenure of 10 years or 120 months, the formula determines that the EMIs payable is Rs 13, 493. Of this, our calculator can even help you decode that the total amount repayable after the term ends is Rs 16, 19, 220.