Formula is given as. This means that the simple interest formula for this example is 2 x10 x 4 80. The Formula for simple interest helps you find the interest amount if the principal amount rate of interest and time periods are given.
After 6 years the balance increases by 60.
Simple interest is a quick and easy method of calculating the interest on a sum of Amount. Simple interest Principle Interest rate per time period Number of time periods. Before we can apply the formula we will need to write the time of 4 months in terms of years. Here we have a data set and to get Simple interest SI amount.