Simple Interest Equation Principal Interest A P 1 rt Where. Simple Interest of an amount is calculated by multiplying the interest rate by the principal amount and the time period. To calculate per-diem interest take the interest rate be sure to express it as a decimal so 10 becomes 010 and divide by 365 to determine the daily interest rate.
I Interest Amount.
For a borrower simple interest is advantageous since the total interest expense will be less without the effect of compounding. Simple Interest Equation Principal Interest A P 1 rt Where. Simple interest is money you can earn by initially investing some money the principal. How to calculate your interest.