Base formula written as I Prt or I P r t where rate r and time t should be in the same time units such as months or years. Will there be 6000 dollars in the account A 6000. P is the principal the amount money borrowed or invested r is the interest rate per year or per annum n is the loan or investment duration in years.
Amount due after 5 yearsPrincipal Simple Interest 50002500.
T Time Periods involved. Another type of problem you might run into when working with simple interest is finding the total amount owed or the total value of an investment after a given amount of time. R Rate of Interest per year as a percent. Compounding is the effect of earning interest on the interest that was previously earned.