Calculate the due interest earned by a principal (initial amount of money lent, deposited or borrowed) of 4,000 units (Dollar, Euro, Pound, etc.), from date: Jan 14, 2019, to date: Feb 14, 2019, namely for a period of 31 days, with an annual simple flat interest rate of 2.5% if the commission fee (withdrawal or payment) is 0%.

Principal (initial amount), P = 4,000


Annual simple interest rate, R = 2.5%


From date: Jan 14, 2019


To date: Feb 14, 2019


Duration, T = 31 days


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


No. of days in a year, N = 365


I = Simple interest:

I = (P × R × T) ÷ N =


(4,000 × 2.5% × 31) ÷ 365 =


(4,000 × 2.5 × 31) ÷ (365 × 100) =


310,000 ÷ 36,500 ≈


8.493150684932 ≈


8.49

B = Amount earned:

B = P + I =


4,000 + 8.493150684932 =


4,008.493150684932 ≈


4,008.49

Signs: % percent, ÷ divide, × multiply, = equal, ≈ approximately 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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