2880 960 T. I Simple interest dollars. Simple interest is a calculation of interest that doesnt take into account the effect of compounding.
You could use the simple interest formula to calculate monthly interest if you have an interest-only loan.
Thus for example your equation. If you want to calculate simple interest over more than 1 year calculate the interest earnings using the principal from the first year multiplied by the interest rate and the total number of years. In many cases interest compounds with each designated period of a loan but in the case of simple interest it does not. The calculation of simple interest is based on the following formula.
