Hi there, and thanks for requesting me!
The formula for simple interest is:
I = prt
This says that the interest is equal to the principal times the rate times the amount of time (in years).
Here is an application. Say you are going to open a regular savings account at your bank that pays 3% interest (as a decimal 3% = 0.03). You are going to put $250 dollars in for 1 year. You can use this formula to compute the interest:
I = 250*0.03*1
I = 7.5
In the year, you will earn $7.50 of interest.
Let me know if you have any questions,
Scott
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