# Chapter 6 - Section 6.7 - Financial Models - 6.7 Assess Your Understanding: 4

Simple interest

#### Work Step by Step

Simple interest follows the following formula: $I=Prt$, where: I is the interest. P is the original principal. r is the interest rate, expressed in decimal form. t is the time, in years.

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.