Simple Interest Formula: Learn How To Calculate Interest With Easy Math

simple interest formula

if you multiply or dividing both sides of the inequality by a negative number it changes the direction of the sign

The formula for calculating simple interest is:

Simple Interest = (P x R x T) / 100

Where:
P = the principal amount (the amount of money borrowed or invested)
R = the rate of interest (expressed as a percentage)
T = the time period (usually in years)

For example, suppose you borrow $10,000 at a simple interest rate of 5% per year for a period of 3 years. Using the formula, we can calculate the simple interest as:

Simple Interest = (10,000 x 5 x 3) / 100
= 1,500

So, the total amount you would have to repay after 3 years would be $11,500.

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