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Calculate the interest earned on your investment using the simple interest formula.
Simple Interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.
The formula for simple interest is: SI = (P × R × T) / 100, where P is the Principal amount, R is the Rate of interest per annum, and T is the Time period in years.
Simple interest is calculated only on the principal amount of a loan. Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods.
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