Categories: Formula

Simple Interest Formula in Forex Trading: A Useful Guide

planations

Simple interest is a type of interest calculated on the principal amount of a loan or an investment. It is calculated as the product of the principal amount, interest rate, and the time period. Unlike compound interest, simple interest does not compound itself and only accumulates on the initial principal amount. The formula for simple interest is: SI = (P x R x T)/100. P stands for Principal amount, R stands for Rate of Interest per annum, and T stands for the Time period of the loan or investment.

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