Learn About Interest Calculator Excel In Brief.
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Hi all, I am learning about the basics of MS Excel. I am only unable to understand the interest calculator excel. Â Does anyone know about the formula? If yes, please reply.
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Hi all, I am learning about the basics of MS Excel. I am only unable to understand the interest calculator excel. Â Does anyone know about the formula? If yes, please reply.
As you must know, the generic formula for calculating simple interest is as follows:
interest=principal amount*rate*time
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If you wish to calculate simple interest in MS Excel, then you can use a formula that multiplies the three terms principal, rate, and time.
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For example, assume that $1000 is the principal amount for 10 years at an interest rate of 5% for a year. Simple interest means that the payments of interest are not in compound form – or that the interest applies to the principal amount only.
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In the example in the image shown, the formula applied in C8 is as under:
=C5*C7*C6