Principal = 1,00,000
Interest = 2
Rate of interest per period = (2 ÷ 1,00,000) × 100 = 0.002%
If for 1 year, annual interest rate = 0.002% per year
If using simple interest, formula = (Principal × Rate × Time) ÷ 100
For 1 year at 0.002%: Interest = (1,00,000 × 0.002 × 1) ÷ 100 = 2
For any time period, interest = 2 × Time in years at the same rate
Example: for 6 months, interest = 1
Example: for 3 months, interest = 0.5