How do you figure simple interest?

Answer 1

simple interest would be something like this:

loan for $7,000 at 10%

Interest would be 7,000 x .1 = $700

the total loan amount woudl be $7,700

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Adam Beazley
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Answer 2

Interest = Principal * Rate * Time

Here Rate should be converted to the same time unit as the "Time" is in.

Eg.

Principal = 1000 Dollars
Rate = 6% per year = 0.06 (convert to fraction ie divide by 100)
Time = 2 Years

Interest = 1000 x 0.06 x 2 = 120 dollars

Now if Say you want interest for only 2 months.
Principal = 1000 Dollars
Rate = 6% per year = 0.06 per year
Time = 2 months

First you convert that 0.06 from per year to per month
So Rate = 0.06 / 12 = 0.005

Interest = 1000 x 0.005 x 2 = 10 dollars

Answer 3

$amt of simple interest = $amt borrowed or saved x interest rate x time.

If you're borrowing $1000 at 5% for 2 years, the amount of simple interest would be equal to 1000 x 0.05 x 2, which equals $100.

Answer 4

Calculator

Answer 5

interest rate times principal times number of months divide by twelve equals annual interest.