How to determine the interest rate?
Using the interest rate formula, we get the interest rate, which is the percentage of the principal amount, charged by the lender or bank to the borrower for the use of its assets or money for a specific time period. The interest rate formula is Interest Rate = (Simple Interest × 100)/(Principal × Time).
How do you find the interest rate?
Know the formula which can help you to calculate your interest rate.
- Step 1: To calculate your interest rate, you need to know the interest formula I/Pt = r to get your rate. …
- I = Interest amount paid in a specific time period (month, year etc.)
- P = Principle amount (the money before interest)
- t = Time period involved.
What is the formula to calculate rate?
Use the formula r = d/t. Your rate is 24 miles divided by 2 hours, so: r = 24 miles ÷ 2 hours = 12 miles per hour.
How do you calculate monthly interest rate?
Monthly Interest Rate Calculation Example
- Convert the annual rate from a percent to a decimal by dividing by 100: 10/100 = 0.10.
- Now divide that number by 12 to get the monthly interest rate in decimal form: 0.10/12 = 0.0083.