Calculating simple interest or the amount of principal the rate or the time of a loan can seem confusing but its really not that hard. Divide the percentage rate by 100 to. After one year you will have 105 and after two years you will have 110.
Determine the total amount borrowed.
This calculator can be used to solve various types of simple interest problems. What had been the interest rate. To calculate interest multiply the principal by the interest rate and the term of the loan. Interest is paid on the total amount of money borrowed also known as the principal.