Interest Rate In Math

Understanding of Interest Rate In Math

Interest is the service of a loan or savings paid at the end of a mutually agreed period.

Interest Rate Formulas

Interest Rate = (Interest / Loan at the beginning) x 100%

Example of Interest Rate Problem

Wulan Borrowed money from decorating for $1,000. After one month, Wulan keeps returning capital and interest of $1,020. Please specify the interest rate paid by Wulan!

Resolution:
Interest = $1,020 - 1,000
Interest = $20

Interest Rate = (Interest / Loan at the beginning) x 100%
Interest Rate = ($20 / $1,000) x 100%
Interest Rate = 2%

So the interest rate paid wulan is 2%.

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