Amount | |

Interest Rate | 10.25% |

No. of Years |

**How this Online Simple Interest Calculator works?**

This online simple interest calculator calculates an accrued amount that includes principal plus interest.

**Simple interest equation**

**A = P(1 + rt)**

Here

A = Total Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

r = Rate of Interest per year in decimal; r = R/100

R = Rate of Interest per year as a percent; R = r * 100

t = Time Period involved in months or years

From the base formula, A = P(1 + rt) derived from A = P + I and since I = Prt then A = P + I becomes A = P + Prt which can be rewritten as A = P(1 + rt)

#### Simple Interest Equation example

Where: **A = P(1 + rt)**

**P= 10,000**

**r= 3.875%**

**t= 5 yrs**

Calculation:

First, converting R percent to r a decimal
**r = R/100 = 3.875%/100 = 0.03875 per year**.

Solving our equation:

**A = 10000(1 + (0.03875 × 5)) = 11937.5
A = $11,937.50**

The total amount accrued, principal plus interest, from simple interest on a **principal** of **$10,000.00** at a **rate** of **3.875% per year** for **5 years** is **$11,937.50**.

**Simple Interest Formulas and Calculations:**

Use this simple interest calculator to find A, the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Where r is in decimal form; r=R/100; r and t are in the same units of time.

**A = P + I = P + (Prt), and finally A = P(1 + rt)**

Calculate Total Amount Accrued (Principal + Interest), solve for A

**A = P(1 + rt)**

Calculate Principal Amount, solve for P

**P = A / (1 + rt)**

Calculate rate of interest in decimal, solve for r

**r = (1/t)(A/P - 1)**

Calculate rate of interest in percent

**R = r * 100**

Calculate time, solve for t

**t = (1/r)(A/P - 1)**