How To calculate Total Maturity Amount Value
The formula A = P(1 + RT) represents the total amount A accumulated over time T with principal amount P and interest rate R.
Example:
Given:
P = ₹10,000 (principal)
R = 5% (interest rate)
T = 3 years (time)
Substitute the values into the formula
A = 10,000(1 + (5 / 100) * 3)
Calculate the interest
A = 10,000(1 + 0.15)
Add 1 and 0.15
A = 10,000(1.15)
Multiply
A = ₹11,500
So, the total amount A is ₹11,500.
Simple Interest Calculator
Simple Interest Calculator calculates interest accrued on a principal amount over a fixed period, based on a predetermined interest rate. It provides users with the total amount payable, comprising the original principal and the accrued interest.
Simple Interest is the method to calculate the interest where we only take the principal amount each time without changing it with respect to the interest earned in the previous cycle.