Simple Interest Formula

[AVG123]

Hello excel experts..........


Today I am unable to calculate simple interest......its very easy but I don't know where I am doing mistakes........

P=1000000
T=21 Months
R=8.7%

I am putting (=p*t*r)/100 but it is giving wrong answer, in this case the answer should be 152250

any expert can right my formula

[kersplash]

How do you know what the answer is?

[alansidman]

v	A	B	C
1	1000000		=(A1*A3)*1.75
2	21
3	0.087

[avk]

Simple interest formula
interest=principal amount*rate*term
But answer is : 1827000

[kersplash]

Term needs to be in years if interest is p.a.

[David A Coop]

You need to calculate like this:

1,000,000 * (21/12) * .087 = 152,250

Your problem is that 8.7% is an annual rate, so the 21 months have to be converted to a fraction of a year.

I hope this helps, please let me know!

Regards,

David

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