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Simple interest is calculated only on the original principal, not on accumulated interest. It grows linearly with time, unlike compound interest which grows exponentially.
Trinn-for-trinn guide
- 1Interest I = P × r × t
- 2Total amount A = P + I = P(1 + rt)
- 3r must be in decimal form (5% = 0.05)
- 4t must be in years
Løste eksempler
Inndata
$1,000 at 5% for 2 years
Resultat
$100 interest
A = $1,100
Inndata
$500 at 3% for 18 months
Resultat
$22.50 interest
t=1.5 years
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