Interest Calculations for One Period
Interest
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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)