How to calculate a simple percentage?

The percentage is the hundredth part of the number. Using it, you can calculate the proportion of any value. A simple interest is the amount that is calculated at the end of the calculation period for the provided initial loan. It is most often used to calculate the accrued amount of issued investments or loans. Bank money must "work" and bring the lender income. When issuing a loan, there is interest - this is the value calculated mathematically, which will be earned from the provision of the loan. If the income is only for the amount given, this is called a simple percentage. You can calculate it with three indicators:

1. The amount of funds borrowed or invested.
2. Interest rate - the rate necessary to calculate the amount of interest. Is a contractual agreement between the lender and the borrower. It is expressed as a percentage in the form of an ordinary fraction or a decimal fraction.
3. The time period is the period during which it is necessary to pay off the debt.

The longer the period for which a loan is given, the more interest the lender has. The standard time interval in financial transactions is most often considered a calendar year. Therefore, a simple interest is calculated at the end of this period by the amount received once, depending on the interest rate.

This scheme assumes that the base on which the accrual occurs is unchanged. Let the borrowed credit (or investment) be equal to P, the interest rate is r. Monetary funds are borrowed on a simple interest basis, if the creditor's capital increases by a value of Pr per year. And in n years he can get the sum Sn: Sn = P + Pr + ... + Pr = P (1 + nr).

In other words, if you take in the bank the amount of money in the amount of 10 thousand rubles for a simple interest, for example 10%, then after the year you need to give 11 thousand rubles.

Sn = 10,000 + 10,000 x 10% = 11,000 rubles.

In two years this amount will be 12 thousand rubles, and in three years - 13 thousand rubles.

Since the formula consists of four variables, it is possible to solve four types of problems. The first is a direct finding of the increased number and three reverse occurrences: the sum of the invested funds, the interest rate and the time of lending. This calculation is correct if the crediting time is equal to a year. Then from this formula it follows that the interest rate is equal to:

R = S / P - 1 / n.

If we need to calculate simple interest in months, the formula will have a different form. Let the time interval be 3 months, then r = S / P - 1:

R3 / 12 = P + Pr / (12 x 3).

Calculate the percentage of the amount for a certain period is simple, applying the formula of simple interest. For the sake of simplicity, we convert the rate into decimal. To do this, divide its value by 100 (r / 100).

In banking contracts, the interest rate is set, which is set for a period of one year. With its help you can determine the amount of income. If this value is divided by the number of days in a year, then you can determine the number of percentages per day. The amount of daily interest multiplied by the necessary period will give us an income for this billing period.

For example, the amount of the initial loan S - 200 thousand rubles. The interest rate is 14.5%. The settlement period is one month (or 31 days). The task: to calculate the necessary amount to be paid for the loan. Decision:

200 х 14,5 / 100 х 31/365 = 2,463 thousand rubles.