The product of the principal amount (P), rate of increase (R), and time in years (T) is the simple interest *
Usually written as
I = Prt
interest i is the product of the principle amount p,the rate of interest r,and the time,t
To calculate the simple interest (I), you multiply the principal amount (P), rate of increase (R), and time in years (T). The formula for calculating simple interest is:
I = P * R * T
Where:
I is the simple interest
P is the principal amount
R is the rate of increase
T is the time in years
So, by multiplying these three values together, you can find the simple interest.
To find the simple interest (I), you need to use the formula:
I = P * R * T
where:
- P represents the principal amount (the initial amount of money)
- R is the rate of increase (expressed as a decimal or percentage)
- T is the time in years
To calculate the simple interest, you multiply the principal amount by the rate of increase and the time in years.
Let's say you have a principal amount of $1000, a rate of increase of 5% (0.05), and a time period of 2 years.
You can input these values into the formula:
I = 1000 * 0.05 * 2
Simplifying the calculation:
I = 1000 * 0.1
I = $100
Therefore, the simple interest for this particular example would be $100.