# How do i calculate an interest rate?

An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. To find the interest rate, you will need to know the time period or length of the loan or investment, the monthly payments and the principle of the loan or investment. Create an Excel spreadsheet to determine your interest rate. Enter a list of headings-Current Value, Future Value, Monthly Payment and Number of Payments.
How to Calculate an Interest Rate
An interest rate is generally a percentage of the amount of a loan that a person is borrowing. Use an amortization schedule to calculate interest rates with help from a financial specialist in this free video on interest rates and loans.... More »
Difficulty: Moderate
Source: www.ehow.com
Interest rates are calculated using the formula I=PRT in which P stands for principle,R stands for rate and T stands for time.
To calculate interest rates you use the following method, the following method is used I=PRT where I is the interest, R is the rate and T is the time taken to pay the interest.
The amount of simple interest is calculated according to the following formula: I_{simp} = r cdot B_0 cdot m. where r is the period interest rate (I/m).
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