answersLogoWhite

0

Simple interest does not compound. In other words, If you start off with $500 and get $5 in interest, the $5 you got in interest will not be included when calculating the amount of interest you will get next year.

Simple interest can be calculated by the formula i = prt, where i is the amount of money earned from the interest, p is the principle (starting money), r is the rate (as a decimal,) and t is the time in years.

Another formula is used to calculated the accumulated amount: A = p(rt + 1), where A is the accumulated amount.

User Avatar

Wiki User

14y ago

Still curious? Ask our experts.

Chat with our AI personalities

MaxineMaxine
I respect you enough to keep it real.
Chat with Maxine
TaigaTaiga
Every great hero faces trials, and you—yes, YOU—are no exception!
Chat with Taiga
ProfessorProfessor
I will give you the most educated answer.
Chat with Professor

Add your answer:

Earn +20 pts
Q: What is simple interest?
Write your answer...
Submit
Still have questions?
magnify glass
imp