Simple interest is calculated only on the initial amount principal that you invested. R Interest Rate. Principal x rate x time interest For example say you invest 100 the principal at a 5 annual rate for one year.
The Time t is the length of time the money is deposited or borrowed.
Total Value 206103 Total Interest 106103. Another type of problem you might run into when working with simple interest is finding the total amount owed or the total value of an investment after a given amount of time. For a borrower simple interest is advantageous since the total interest expense will be less without the effect of compounding. In the case of an.