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- Simple Interest Calculator

**Simple interest is calculated only on the initial amount (principal) that you invested.**

**Example:** Suppose you give \$100 to a bank which pays you 5%
simple interest at the end of every year. After one year you will have \$105, and
after two years you will have \$110. This means that you will not earn an interest on your interest.
Your interest payments will be $5 per year no matter how many years the initial sum of money
stays in a bank account.

This calculator can be used to solve various types of simple interest problems. **The calculator will print easy to understand step-by-step explanation**.

**problem**

You deposit **$12000** into a bank account paying **1.5%** simple interest per **month**.
You left the money in for **210 days**. Find the interest earned and the amount at the end of
those **210 days**?

**solution**

The interest is ** $1242.734 ** and the amount is ** $13242.734**.

**explanation**

**STEP 1:** Convert interest rate of
**1.5%** per **month** into rate per year.

**STEP 2:** Convert
**210 days** into years.

**STEP 3:** Find an interest by using the formula $ I = P \cdot i \cdot t $, where **I** is interest,
**P** is total principal, **i** is rate of interest per year, and **t** is total time in years.

In this examplee **P = $12000**, **i = 18%** and **t = 0.57534 years**, so

**STEP 4:** Find an amount by using the formula $ A = P + I $.

Since **P = $12000** and **I = $1242.734** we have

working...

examples

example 1:ex 1:

You deposit $ \$ 1000$ into a bank account paying $7\,\%$ **simple interest** per year. You left the money in for $3 \text{years}$.
Find the interest earned and the amount at the end of those $3 \text{years}$ ?

example 2:ex 2:

You deposit $\$12000$ into a bank account paying $1.5\%$ simple interest $\text{per month}$. You left the money in for $210 \text{days}$. Find the interest earned and the amount.

example 3:ex 3:

You deposit some money into a bank account paying $4\%$ simple interest $\text{per year}$. You received $\$72$ in interest after $3 \, \text{years}$.
How much the deposit (principal) was?

example 4:ex 4:

You deposit some money into a bank account paying $2\%$ simple interest $\text{per 6 months}$. You received $\$15$ in interest after $\text{9 month}$.
How much the principal was?

example 5:ex 5:

You deposit $\$1000$ into a bank account and received $\$50$ simple interest after $\text{3 months}$. What had been the interest rate?

example 6:ex 6:

You deposit $\$350$ into a bank account paying $1.2\%$ simple interest $\text{per month}$.
If you received $\$9$ as interest, find the time for which the money stayed in the bank.

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