Click on the Calculate button to calculate. Principal x Rate x Time Interest p x r x t. Your intermediate accounting textbook may substitute n for time the n stands for number of periods time.
The total amount accrued principal plus interest from simple interest on a principal of 1000000 at a rate of 3875 per year for 5 years is 1193750.
Learning how to calculate simple interest is a matter of multiplication along with a bit of technical vocabulary. Click on the Calculate button to calculate. Simple interest is calculated only on the original sum of money which is known as the principal. A percentage the interest of the principal is added to the principal making your initial investment grow.