Calculate the due interest earned by a principal (initial amount of money lent, deposited or borrowed) of 5,000 units (Dollar, Euro, Pound, etc.), from date: Aug 13, 2020, to date: Dec 13, 2020, namely for a period of 122 days (4 Months), with an annual simple flat interest rate of 1.5% if the commission fee (withdrawal or payment) is 0%.

Principal (initial amount), P = 5,000


Annual simple interest rate, R = 1.5%


From date: Aug 13, 2020


To date: Dec 13, 2020


Duration, T = 122 days (4 Months)


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


No. of days in a year, N = 365


I = Simple interest:

I = (P × R × T) ÷ N =


(5,000 × 1.5% × 122) ÷ 365 =


(5,000 × 1.5 × 122) ÷ (365 × 100) =


915,000 ÷ 36,500 ≈


25.068493150685 ≈


25.07

B = Amount earned:

B = P + I =


5,000 + 25.068493150685 =


5,025.068493150685 ≈


5,025.07

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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