The simple interest formula is fairly simple to compute and to remember as principal times rate times time. At first more of your monthly payment will typically go toward the interest. Simple interest is calculated only on the original sum of money which is known as the principal.
Simple Interest is different than Compound Interest.
For the above calculation you have 450000 to invest or borrow with a rate of 95 percent for a six-year period of time. A simple interest loan is one in which the interest has been calculated by multiplying the principal P times the rate r times the number of time periods t. The loan term is 3 years 36 months so n 36. This calculator for simple interest-only finds I the simple interest where P is the Principal amount of money to be invested at an Interest Rate R per period for t Number of Time Periods.