Answer
To calculate simple interest, we multiply the present value by the interest rate and the number of years.
Work Step by Step
With simple interest, this is the formula we use to calculate the amount of interest, $I$.
$I = P~r~t$
$P$ is the present value
$r$ is the interest rate
$t$ is the number of years
To calculate simple interest, we multiply the present value by the interest rate and the number of years.
