Interest = principal × interest rate× time
When calculating one-year interest, "time" is equal to 1. When the calculation period is less than
Interest = principal × interest rate× time
When calculating one-year interest, "time" is equal to 1. When the calculation period is less than one year, then "time" is a fraction.
Notes receivable and interest income
For example, if we need to calculate the interest for 3 months, the "time" will be 3/ 12.