# How to Use the Simple Interest Formula

Calculating simple concern or the sum of star, the rate, or the time of a loan can seem confuse, but it ‘s in truth not that hard. here are examples of how to use the simpleton interest recipe to find one value american samoa long as you know the others .

## Calculating concern : Principal, Rate, and Time Are Known

Deb Russell

When you know the chief measure, the rate, and the prison term, the amount of matter to can be calculated by using the formula :

I = Prt

For the above calculation, you have \$ 4,500.00 to invest ( or borrow ) with a rate of 9.5 percentage for a six-year menstruation of time .

## Calculating Interest Earned When Principal, Rate, and Time Are Known

Deb Russell
Calculate the amount of sake on \$ 8,700.00 when earning 3.25 percentage per annum for three years. once again, you can use the I = Prt formula to determine the full measure of concern earned. Check with your calculator .

## Calculating Interest When the Time Is Given in Days

Deb Russell
Suppose you want to borrow \$ 6,300 from March 15, 2004, until January 20, 2005, at a rate of 8 percentage. The formula will still be I = Prt ; however, you need to calculate the days .
To do indeed, do not count the sidereal day the money is borrowed or the day the money is returned. To determine the days : March = 16, April = 30, May = 31, June = 30, July = 31, August = 31, September = 30, October = 31, November = 30, December = 31, January = 19. consequently, the meter is 310/365. A sum of 310 days out of 365. This is entered into the metric ton for the formula .

## What Is the Interest on \$ 890 at 12.5 percentage for 261 Days ?

Deb Russell
once again, apply the formula :

I = Prt

﻿You have all the information you need to determine the interest in this question. Remember, 261/365 days is the calculation for deoxythymidine monophosphate = time .

## Find the Principal When You Know the Interest, Rate, and Time

Deb Russell
What amount of principal will earn matter to of \$ 175.50 at 6.5 percentage in eight months ? once again, use the derive formula of :

I = Prt

which becomes :

P = I/rt

Use the exercise above to help you. Remember, eight months can be converted to days or you can use 8/12 and move the 12 into the numerator in the rule .

## What Sum of Money Can You Invest for 300 Days at 5.5 percentage to Earn \$ 93.80 ?

Deb Russell
As above, use the derive rule of :

I = Prt

which will be :

P = I/rt

In this event, you have 300 days, which will look like 300/365 in the formula. Remember to move the 365 into the numerator to enable the formula to work. Get out your calculator and check your answer with the solution above .

## What annual pastime Rate Is Needed for \$ 2,100 to Earn \$ 122.50 in 14 Months ?

Deb Russell
When the total of interest, the principal, and the time menstruation are known, you can use the derive formula from the dim-witted interest formula to determine the rate, as follows :

I = Prt

becomes

r = I/Pt

Remember to use 14/12 for time and move the 12 to the numerator in the formula above. Get your calculator and check to see if you ‘re correct .
Edited by Anne Marie Helmenstine, Ph.D .

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