Simple interest

• How to find simple interest

  1. Identify the principal (P), interest rate (R), and time (T)

  2. Use the formula: SI = P x R x T

  3. Calculate the simple interest by substituting the values into the formula
• Absolutely! Simple interest is a way to calculate the

  Here's an example:

  Imagine you borrow $1,000 (P) at an annual interest rate of 8% (R) for 2 years (T).

  * Convert the interest rate into a decimal: 8% / 100 = 0.08

  * Apply the formula: SI = $1000 x 0.08 x 2 = $160

  Therefore, the simple interest charged on the loan would be $160 after 2 years.