Interest Revenue Calculator

Formula

The formula to calculate the Interest Revenue (IR) is:

\[ \text{IR} = \text{PA} \times \frac{\text{IR}}{100} \]

Where:

$ \text{IR} $ is the Interest Revenue ($/year)
$ \text{PA} $ is the Principal Amount ($)
$ \text{IR} $ is the Interest Rate (%/year)

Interest Revenue Definition

Interest revenue is the income earned by an entity from lending out its money or from investments that yield interest. It is calculated by multiplying the principal amount by the interest rate.

Example Calculation

Let's consider an example:

Principal Amount (PA): $10,000
Interest Rate (IR): 5%/year

Using the formula to calculate the Interest Revenue:

\[ \text{IR} = 10000 \times \frac{5}{100} = 10000 \times 0.05 = 500 \, \text{\$/year} \]

This demonstrates that with a principal amount of $10,000 and an interest rate of 5% per year, the interest revenue would be $500 per year.