Interest can be defined as the payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount. The interest amount is an addition to the repayment of the principal sum and calculated at a predetermined rate. Interest can be calculated with the help of two formulas which are simple interest and compound interest respectively.
Another easy trick to calculate the interest amount is to use 2 Rupees interest for ₹1 Lakh per month equation. Calculating 2 Rupee interest for ₹1 Lakh is related to the ₹1 interest concept. The ₹1 interest concept is the calculation of 1 rupee interest per month on the principal amount.
Let’s assume you have invested ₹100 at 1 Rupee interest per month.
It means, your yearly interest = 1 x 12 = 12%
In the same way, with 2 Rupee interest on ₹100, the percentage = 2 x 12 = 24%
Now let's see how to calculate 2 Rupee interest for ₹1 Lakh
Assume that you have invested ₹1,00,000 for monthly payouts at ₹2 Rupee interest, your rate of interest would be 24%.
Refer to the formula.
Monthly rate of interest = 24/12 = 2%
Additionally, monthly interest to be received = 1,00,000/2 x 100 = ₹2000
You can calculate 2 Rupee interest for ₹1 Lakh by using the simple interest method. Simple interest can be calculated with the formula of
l = p× r × t,
where “I” stands for interest, “p” stands for principal, “r” stands for the rate of interest and “t” stands for the amount of time.
You can also calculate 2 Rupee interest for ₹1 Lakhs by using compound interest method. Compound interest can also be calculated using the same formula of simple interest. However, the amount of interest earned each year will be added to “p” to create a new principal, which grows larger every year.
You can also calculate 2 Rupee interest for ₹1 Lakhs by using the compound interest method.
To calculate compound interest you should know the below mentioned details :
The principal amount invested by you
The rate of interest at which you want to calculate compound interest
The number of times your interest gets compounded per year
The number of years (time period/tenure) you wish to stay invested
Now, to calculate compound interest use the following formula :
A = P (1 + r/n)nt
A = future value of interest,
r = rate of interest (in decimal format),
n = number of periods the interest gets compounded,
t = time period/tenure/duration
Now that you have learned how to calculate 2 Rupee interest for ₹1 Lakh by both the methods of calculating interest, i.e. simple interest and compound interest, you can now easily calculate ₹2 Rupee Interest for 1 Lakh per month with the formula of :
l = p× r × t
You can now decide the tenor/term period of the interest earned on ₹1 Lakh by inserting the amount of time with the above mentioned formula.