# How Do I Compute Interest Per Annum?

It is easy to know how to compute the interest per annum if you know the principal amount, the simple interest and the time period in years. The formulas is basically Simple interest=Principal x annum rate x time. So for a \$100 dollar principal for 5 years with a simple interest of \$20, the annual interest would be 4%.
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 Interest per annum is a compound interest, determined every year that the loan has not been paid. A \$100.00 loan at 1% per annum requires you to pay back \$101.00 and another 1% the http://answers.ask.com/Science/Other/how_do_i_comp...
 Loans are marketed with interest rates that are measured in two basic forms--annual or compound. The annual interest rate, also referred to as a simple interest rate, is the same http://www.ehow.com/about_6679883_per-annum-intere...
 1. Divide the interest rate by 100 to convert it to decimal format. As an example, 8 percent would be converted to 0.08. 2. Multiply the interest rate in decimal format to the principal http://www.ehow.com/how_7765222_calculate-simple-i...
 1. Multiply the principal by the rate of interest. For example, using \$8,500 as the amount of principal and .0325 as the rate of interest, the calculator will display 276.25. 2. Multiply http://www.ehow.com/how_5003756_calculate-interest...
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