# How To Find Rate Of Interest

Simple interest is money you can earn by initially investing some money (the principal). A percentage (the interest) of the principal is added to the principal, making your initial investment grow! What amount of money is loaned or borrowed?(this is the principal amount) \$.

Find the number of payments you will make within a year. Get the posted interest rate from the lender. Divide the interest rate by the number of payments within the year. Multiply that by the principal, or original amount borrowed.

Unless you have a promotional deal in place, the likelihood is that your debts will be incurring interest charges based on.

To find simple interest, multiply the amount borrowed by the percentage rate, expressed as a decimal. To calculate compound interest, use the formula A = P(1 + r) n, where P is the principal, r is the interest rate expressed as a decimal and n is the number of number of periods during which the interest will be compounded.

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nominal interest rate is the interest rate figure before an adjustment for inflation is taken into account. The formula for nominal interest rate is: Nominal interest rate = n ((1 + r) 1/n – 1) r = effective interest rate

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Effective Interest Rate Formula. Where r is the interest rate per period in decimal form so R = r * 100 and, i is the effective interest rate in decimal form so I = i * 100. P is the rate per compounding period where P = R/m. Effective interest rate per period,