• PA is the principal amount ($) • IR is the interest rate (%/year) ## How to Calculate Interest Revenue? The following example problems outline how to calculate Interest Revenue. Example Problem #1: 1. First, determine the principal amount ($). In this example, the principal amount ($) is given as 34,000. 2. Next, determine the interest rate (%/year). For this problem, the interest rate (%/year) is given as 12. 3. Finally, calculate the Interest Revenue using the equation above: IR = PA * IR/100 The values given above are inserted into the equation below: IR = 34,000 * 12/100 = 4080 ($/year)

Example Problem #2:

The variables needed for this problem are provided below:

principal amount ($) = 12,000 interest rate (%/year) = 20 Entering these values and solving gives: IR = 12,000* 20/100 = 2,400.00 ($/year)