Question

Whats the formula for simple interest?....HELP

Answer 1

The formula for calculating simple interest is:

Simple Interest = (Principal x Rate x Time) / 100

Where:

Principal = the initial amount of money (the "principal sum")

Rate = the interest rate (expressed as a decimal or percentage)

Time = the length of time the interest is applied (usually in years)

It's important to note that simple interest is a method where the interest is calculated only on the original principal sum, not on any accumulated interest.

Answer 2

The simple interest formula is

i = P*r*t

where,

• i = interest
• P = deposit or starting amount or loan value
• r = annual interest rate in decimal form
• t = number of years

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An example:

You borrow $500 at a simple interest rate of 2% over 3 years

• P = 500
• r = 0.02
• t = 3

Use those values to compute the following:

i = P*r*t

i = 500*0.02*3

i = 30

The amount of interest only is $30; meaning the total amount to pay back is $500 + $30 = $530