Question

whats the formula for simple interest?

Answer 1

The formula for calculating simple interest is:

\[
\text{Simple Interest} = P \times r \times t
\]

where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the annual interest rate (expressed as a decimal), and
- \( t \) is the time (in years) that the money is invested or borrowed.

To calculate the total amount (A) after the interest has been applied, you can use the formula:

\[
A = P + \text{Simple Interest}
\]

or simply:

\[
A = P \times (1 + r \times t)
\]