<span><span>P is the principal amount, $550.00. </span><span>R is the interest rate, 3% per year, or in decimal form, 3/100 = 0.03. </span><span>T is the time involved, 10 year(s) time period. </span><span>So, t is the 10 year time period.
</span></span><span>To find the simple interest, we multiply 550 × 0.03 × 10 to get $165.00 </span> <span>Then the interest is added onto the principal to figure the new amount after 10 years. </span> <span>550.00 + 165.00 = 715.00 > $715.00 after 10 years.</span><span>
