Simple Interest Calculator

Understanding the Simple Interest Calculation

Formula: The simple interest is calculated using the formula:

Simple Interest = ( Principal × Rate × Time )/100

Where:

• Principal: The initial amount of money invested or loaned.
• Rate: The annual interest rate. If the rate is provided monthly, it is converted to an annual rate.
• Time: The time period for which the money is invested or loaned. If the time is provided in months, it is converted to years.

The calculator adjusts the interest rate and time period based on the user's input to ensure accurate calculation. The total interest earned or paid and the total amount after interest are displayed as the results.