The interest is the amount of money that is paid in addition to the amount borrowed. The total interest is directly proportional to the amount borrowed and the duration of the loan.
If time is expressed in years:
If time is expressed in months:
If time is expressed in days:
Calculate the amount of simple interest that is paid over a period of five years on a principal of $30,000 at a simple interest rate 6%.
Calculate the total amount paid in six months on a principal of $10,000 at a simple interest rate of 3.5%.
How long will it take a principal of $25,000 at a simple interest rate of 5% to become $30,000?