How to Calculate Simple Interest

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Lesson Objective
In this lesson, we will see some examples on how to calculate simple interest... 
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About This Lesson
In this lesson, we will see some examples on using the simple interest formula to calculate simple interest. These examples will show:
  1. how we can calculate the interest when the principal, interest rate and loan duration (in year & month) are given.
    (1st math video & 2nd math video)
  2. how we can use the simple interest formula to find the interest rate, r.
    (3rd math video)
The study tips and math videos below will explain more.
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Study Tips

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Tip #1
The formula for finding simple interest, I is given below:
simple interest formula
Where:   
  1. P is the principal (the amount of money borrowed)
  2. r is the interest rate (per year or per annum)
  3. t is the loan duration in years.
The math videos below will show some examples on using this formula...

Math Video

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Video on calculating for I when P, r and t (in year) are given...
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Video on calculating for I when P, r and t (in month) are given...  
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Video on calculating for r when I, P and t are given...
 
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Math Video Transcript

Practice Questions & More

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Multiple Choice Questions (MCQ)
Now, let's try some MCQ questions to understand this lesson better.

You can start by going through the series of questions on calculate simple interest or pick your choice of question below.
  1. Question 1 on the using the simple interest formula
  2. Question 2 on using the maturity value formula
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