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anastassius [24]
2 years ago
14

What is the formula for Simple Interest? ...What does each letter mean?

Mathematics
1 answer:
ella [17]2 years ago
6 0

Step-by-step explanation:

  • Simple Interest Formula
  • P = Principal Amount. I = Interest Amount. r = Rate of Interest per year in decimal; r = R/100. R = Rate of Interest per year as a percent; R = r * 100.
  • Simple interest is an application of percentage. Understanding the concept of simple interest is not only important for you to know how to solve problems in class, but also is a fundamental skill to help you manage your finances. With the basic knowledge on how the concepts work, you get empowered to make good financial decisions. In this article, we are going to learn how to calculate simple interest and the knowledge to solve real life problems. Let’s first start by defining the terms involved in simple interest.
  • The principal amount (P)
  • The principal is the money borrowed or initial amount of money deposited in a bank. The principal is denoted by a capital letter “P.”
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