How do I calculate interest on my money?

✅What is the formula to calculate simple interest? You can calculate Interest on your loans and investments by using the following formula for calculating simple interest: Simple Interest= P x R x T ÷ 100, where P = Principal, R = Rate of Interest and T = Time Period of the Loan/Deposit in years.

How do you calculate interest on a full year investment?

It is calculated by multiplying the first principal amount by one and adding the annual interest rate raised to the number of compound periods subtract one. The total initial amount of your loan is then subtracted from the resulting value.

What does 2 rupee interest mean?

1 rupee interest means 1rupee is paid as interest per Month for every 100 rupees borrowed. i.e., 1\% per month, amounting to 12\% annum. Likewise 2 rupee interest means 24\% ROI per annum.

What is the interest rate for 1 lakh?

Likewise, for an investment of Rs 20 Lakhs, you will get Rs. 10,517 as monthly interest….Monthly Payout.

Investment amount	Monthly interest	Cumulative interest for 5 years
1 lakh	Rs. 526	Rs. 37,009
5 lakh	Rs.2,629	Rs. 185,043
10 lakh	Rs.5,258	Rs.3,70,087

What is the Rule of 72 in finance?

The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself.

What is a maturity value?

Maturity value is the amount due and payable to the holder of a financial obligation as of the maturity date of the obligation. The term usually refers to the remaining principal balance on a loan or bond. In the case of a security, maturity value is the same as par value.