What is the best way to calculate %interest?

The most straightforward way to calculate percentage interest is to use the simple interest formula. This involves multiplying the principal amount by the annual interest rate and then by the number of years. For example, if you have ₹1,00,000 invested at an interest rate of 5% per year for 5 years, based on the SI formula:

A = P(1+rt)

Where:

• A = Total repayment amount
• P = Principal amount
• r = Interest rate in decimal form
• t = Time period in years

the interest earned would be ₹1,00,000(1+0.05x5) = ₹25,000.

Use the compound interest formula instead for more frequent compounding periods like monthly or daily interest. This will give a higher return as interest earns interest.