Using the Simple Interest Formula 1. Using the Simple Interest Formula to Calculate Interest Earned Learning Outcomes. To find the simple interest we multiply 20000 004 1 year.
Interest I Principal P times Rate Per Period r times Number of Periods n Divide an annual rate by 12 to get r if the Period is a month.
Find the simple interest earned after 3 3 years on 500 500 at an interest rate of 6. Principal x rate x time interest For example say you invest 100 the principal at a 5 annual rate for one year. P x r x t 100. This time period usually would be in years.