Simple (Flat Rate) Interest Calculator: Calculate the Principal (Initial Starting Amount of Money) To Be Lent, Deposited or Borrowed With a Simple (Flat) Interest Rate in Order To Produce a Sum of Money of 4,000,000 Units (Dollar, Euro, Pound, etc.) for an Investment Duration Period of 3,684 Days (121 Months). Annual Simple (Flat) Interest Rate: 2%
Detailed calculations of the principal
Notations and variables used:
Principal (initial amount), P
Due interest, I = 4,000,000
Annual simple interest rate, R = 2%
From date: Jan 2, 2020
To date: Feb 2, 2030
Duration, T = 3,684 days (121 Months)
Transaction fee rate, F% = 0%
Transaction fee amount, F
Number of days in a year, N = 365
Calculate P, the principal (the initial amount of money to be lent, deposited or borrowed) to earn the simple (flat rate) interest
The simple (flat rate) interest calculation formula:
I = (P × R × T) ÷ N ⇒
P = (N × I) ÷ (R × T) =
(365 × 4,000,000) ÷ (2% × 3,684) =
(100 × 365 × 4,000,000) ÷ (2 × 3,684) =
146,000,000,000 ÷ 7,368 ≈
19,815,418.023887079262 ≈
19,815,418.02
Calculate E, the amount earned after adding the simple (flat rate) interest amount to the principal
E = P + I =
19,815,418.023887079262 + 4,000,000 =
23,815,418.023887079262 ≈
23,815,418.02
Used symbols: % percent, ÷ divide, × multiply, = equal, ≈ approximately equal.
Writing numbers: comma ',' used as thousands separator, point '.' used as a decimal mark.
More operations with the simple (flat rate) interest, calculate the principal:
Calculate principal amount to invest to get a certain simple flat rate interest
Principal = (Number of days in a year × Simple flat rate interest) ÷ (Annual simple flat interest rate × Duration in days)