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simple Interest payable can be calculated;
yearly --- principle amount * interest rate/100
monthly --- principle amount * interest rate/100 *no. of months/12
Its very simple by mulitiplying Principal Amount with Interest rate and numbers of years. Interest payable = P * r*t
Multiply the principal loan amount by the annual interest rate. The result then is multiplied by the loan's time period.
Interest=(interest rate/Number of payments) x Principle Amount
Another method is the loan amortization table method
(interest rate / number of payments)*loan principal
its calculated by deviding the numberof days basing on the loan given out to the individual with the percentage agreed on.
Calculate the interest on a certain value by applying the interest rate for the period of time.
