## Interest Calculations for One Period

### Interest

**[Watch video for understand the concept with examples and explanation]**

Interest for one period is the difference between Future Value after one period and Principal

Interest = Future Value – Principal

Future Value = Principal + Interest

### Rate of Interest

Rate of interest is how much to pay as interest for 1 rupees in 1 period of time.

Interest Rate = Interest / Principal

Interest = Interest Rate X Principal

Interest rate in percentage is interest for 100 rupees in 1 period of time.

Interest Rate in % = (Interest / Principal ) X 100 %

Future Value = Principal (1 + Interest Rate)