John borrows 1,00,000 for 5 Years, at 10% simple interest rate.
Simple Interest Amount(I) = Principal(P) * Interest Rate(R) * Term of the loan (N) / 100
Principal Amount(P) |
: 1,00,000 |
Interest Rate(R) |
: 10 % |
Term of the loan (N) |
: 5 Years |
Simple Interest(I) = 1,00,000 * 0.10 * 5
Simple Interest(I) = 50,000