Calculate the due interest earned by a principal (initial amount of money lent, deposited or borrowed) of 130 units (Dollar, Euro, Pound, etc.), from date: Feb 19, 2018, to date: Feb 19, 2019, namely for a period of 365 days (12 Months), with an annual simple flat interest rate of 2% if the commission fee (withdrawal or payment) is 0%.

Principal (initial amount), P = 130


Annual simple interest rate, R = 2%


From date: Feb 19, 2018


To date: Feb 19, 2019


Duration, T = 365 days (12 Months)


Commission fee (withdrawal or payment), F = 0%


No. of days in a year, N = 365


I = Simple interest:

I = (P × R × T) ÷ N =


(130 × 2% × 365) ÷ 365 =


(130 × 2 × 365) ÷ (365 × 100) =


94,900 ÷ 36,500 =


2.6

B = Amount earned:

B = P + I =


130 + 2.6 =


132.6

Signs: % percent, ÷ divide, × multiply, = equal;

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Calculate simple flat rate interest on a principal borrowed, lent

Simple flat rate interest = (Principal × Annual simple flat interest rate × Duration in days) ÷ Number of days in a year

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