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- Simple Interest Calculator

**Simple interest calculator finds the principal amount, interest amount and interest rate using simple
interest formula.**
This calculator can help you deal with all kinds of simple
interest problems.
The calculator prints an easy-to-follow, step-by-step explanation.

working...

EXAMPLES

example 1:ex 1:

You put $1,000 into a bank account that pays 7% simple interest each year.
You left the money in there for 3 years. Determine the interest earned and the total amount at the end of three years.

example 2:ex 2:

You deposit $12000 into a bank account with a monthly interest rate of 1.5%. You had the money in there for $210 days. Determine the amount of interest earned.

example 3:ex 3:

You put money into a bank account that pays 4% simple interest each year.
After three years, you collected $72 in interest. How much was the deposit (principal)?

example 4:ex 4:

You put money into a bank account that pays 2% simple interest every six months.
After 9 months, you received $15 in interest. How much was the principal?

example 5:ex 5:

You deposited $1000 into a bank account and received $50 in simple interest after three months.
What was the interest rate?

example 6:ex 6:

You deposit $350 into a bank account with a monthly interest rate of 1.2%.
Determine the length of time the money was in the bank if you received $9 in interest.

Find more worked-out examples in the database of solved problems..

**Simple interest is based only on the principal amount**, unlike compound interest, where we use previously earned interest
to calculate the next interest. For example if we invest \$100 for 3 years at an interest rate of 10% than we earn
$10 each year. This calculator uses the following formula to solve simple interest problems:

P is the principal. This is the total amount of money we invested.

R is the ANNUAL rate of interest at which the money is given.

T is the time duration in years for which the principal is invested.

We will show how to use simple interest forumula on two examples.

Step1 : Transform 6% into decimal

6% = 6 ÷ 100 = 0.06

Step2 : Apply above formula:

I = P × R × T = 1200 × 0.06 × 3 = 216

Step1 : Transform 18 months into years

18 M = 18 ÷ 12 = 1.5 Y

Step2 : Apply above formula:

I = P × R × T

R = I ÷ ( P × T)

R = 56 ÷ (800 × 1.5)

R = 0.047

R = 4.7%

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RESOURCES

1. Simple Interest formula with examples

440 431 911 solved problems